As a rule, professional traders follow the same parameters when choosing a broker company, whereas beginners do not know what exactly to pay their attention to. Although there is no single scheme of choosing a broker in the world of Forex, but there is a certain set of rules, worth paying attention to.
And, what is more, everybody knows that success of a trader and his business depends on the quality of services provided by his broker. So what should actually happen for a trader to get serious reasons to go to another company? Specialists of Ya-hi company have helped us to handle this and other questions.
When Do I Change a Broker?
It goes without saying that opening a trading account in another company simply because it offers something new is foolish and meaningless. By acting in such a way you are unlikely to find the best trading terms in foreseeable future. By jumping from one broker to another you are most likely to have another disappointment every time, for you will probably meet the same drawbacks in organization of trade, or discover new ones. It is necessary to keep in mind that nobody will ever suggest you ideal terms. One can talk only about improvement or deterioration. What is more, if you cooperate with one and the same company for a long time, you will not only get used to arising problems, but also will certainly learn to handle them. Most importantly, these problems should not be so serious to interfere with your making money.
According to experts of Ya-hi company, a need to change a broker may arise not only through the fault of the company itself, but also due to new demands of the trader. For example, you want to apply a new trading strategy, but limitations, set by the broker, prevent from doing this. Or you may need other trading terms (additional financial instruments, different level of commission fees and spreads, higher speed of order fulfillment, etc.). Such advantages as providing bonus means, welcome sums when opening a trading account, profitable offers and loyalty programs, can be considered an additional advantage when choosing a broker, but on no account should they be the reason for its change. If you are truly attracted by new opportunities, offer by another company, you should rather open a parallel account in this company and make sure in practice that working with it is truly convenient and profitable. You can quit the broker company, where you already have an account only if you notice a great difference. But, this happens very rarely.
On the other hand, as explained by specialists of Ya-hi, sometimes there do arise conditions when continuing to work with one’s broker is impossible or has no point. This is the time when you have to look for a new company. The most evident of them is bankruptcy of the broker. However, it also happens so that for some reason the company’s service has considerably worsened, or the broker simply fails to meet its obligations. Look for a new company if:
- a broker does not withdraw money from your account by set rules;
- there happen cases of considerable slipping or problems with fulfillment of orders;
- it became evident that a broker works against its clients and does not bring deals to providers of liquidity;
- money has disappeared from your account, or the company unexpectedly requires to bring in money for continuation of cooperation;
- the company’s terminal does not show real market quotations, its server constantly freezes, connection is missing, etc.
Another piece of advice from Ya-hi specialists: do not hurry to quit a broker only because there have unexpectedly arisen some problems with your account. There are times when they are instigated by a general situation at the market (for example – a recent crisis, connected with Swiss franc). If something goes wrong, address the support service and try to solve everything by common effort. Regard closing an account as the utmost step.
How to Find a Reliable Broker?
And again, let us remind that simply do not exist ideal companies. However from all those working at the market you are to choose the best brokers. And here arises the following question: how not to fall for commercials when assessing the quality of a new broker’s service, but to achieve the desired result?
First of all, specialists of Ya-hi company recommend regarding brokers with very aggressive advertising campaigns very cautiously. Probably, they are merely beginners that are trying to attract as many clients as possible at any cost. But will they be able to provide good service and reliable safeguard of capital – that is the question. At the same time, company who do not advertise their services at all also have to arouse suspicion. There is no brand in the world, which could refuse from supporting its image.
When choosing a new broker, pay attention to how many years it has existed at the market, whether or not it has licenses from regulators and awards from authoritative organizations. Though, this does not yet guarantee a successful choice. Always check how much what the company says about itself in commercials and articles corresponds to what it really offers to its clients. If you want to avoid mistakes, never bring into your deposit a big sum of money at once. You should rather try to work with a new broker with a sum, which you, at least, can sacrifice.
Some traders use such trick: open accounts with small deposits in three or five companies they like and effect the same transaction. After several weeks or one-two months (depending on the character of the market and whether they have managed to reach considerable turnover) they compare results and then withdraw money. In the end, you will certainly notice if a broker provides non-market quotations or works against his clients. Also, pay attention to the fact how willingly its returns money from accounts.
However, even before such testing when choosing a new broker try to answer several standard questions:
- Do the company’s trading terms correspond to the generally accepted market ones, are there no unmotivated limitations, is the choice of financial instruments wide enough?
- Will you be able to apply your trading strategies within the offered terms?
- What guarantee of reliability does the company provide, how does it care about its clients, and if it helps them to earn money?
- How well do you know the company? Maybe, you have heard about it only today, or has it been recommend by one of your friends? Have you already tried to cooperate with this broker, what was the result?
- Is the company interested in needs of its clients, how often does a broker offer new products, improve services and trading terms?
Ya-hi also informs that the company has recently mounted on the Web a form for traders with a PRESENT “Check-list for entering a deal successfully”. This form will help the company’s specialists to better understand their clients, as well as find out how participants of trade assess its work. Experts hope that this will help to make the company’s services even better. By the way, the skill of communicating with clients and allowing them to directly partake in improvement of working terms also says for the broker, so it is also worth paying attention to.
