Broker Comparison Online - Before Chosing a Broker, Read This.

Broker comparison online – How to choose a broker?

There are hundreds of online brokers all over the world, plus traditional brokers. Thus, the investor can quickly drown under the number of offers and fees. Added to this is the fact that an investor can open an account with a foreign broker, which multiplies the possibilities. Broker comparison online, there is no question in this article to influence you for the such or such broker, but more to give the keys success, to choose a trustworthy and suitable broker. Because, vis-à-vis the choice of its partners, the investor must be as selective as possible, to avoid unpleasant surprises. Here are some points that will allow you to see more clearly.

Broker comparison online – Regulation by a competent authority

Here is an essential point. Your broker must have regulation by a financial regulatory authority recognized worldwide. This authority must also be that of a country in which you have full confidence, to minimize risks. Even essential to determine where they have their main office (is it in a country you trust or is it offshore?). Among the most important in Europe, we can mention FINMA (Switzerland), AMF (France), BAFin (Germany), FCA (England), etc…

Broker comparison online – What are the guarantees for your funds?

brokers comparison

It is also essential to find out about the bank deposit guarantee in force with a broker. Indeed, after checking that a recognized authority regulated it, it must guarantee your funds up to a certain height. Something fundamental because if your broker goes bankrupt, this state guarantee fund will provide you with the maximum amount you can recover.

In Switzerland for example, esisuisse is responsible for guaranteeing bank customers up to CHF 100,000, regardless of the size or nationality of the bank. Once you have the Swiss banking license, your funds will be guaranteed. Otherwise, your broker may deposit your funds with a bank that owns the license, but then you will ask your broker what this bank is.

Broker comparison online – What charges fees will you pay?

Once the two previous points are clear, it is interesting to look into the issue of fees. There are a plethora of fees that your broker may charge you: custody fees, account maintenance fees, inactivity fees, fixed fees for financial instruments, variable fees, rollover fees, spreads. You will have to take into account all of these expenses to make your choice.

Today, there is no longer, in the absolute, extravagant differences between brokers. However, some have chosen to focus on some products and others elsewhere. It is important to see which broker is the cheapest for your trading style (index trading, forex trading, MT4 trading, day trading, scalping, long-term trading, etc…). Once all this is cleared up, things will be more precise in your mind.

Broker comparison online – How does your broker get paid?

brokers comparison

Your broker charges you a fee, but do you know all the fees the broker is charging you for? Does the spread contain all the commission? Will you have additional costs? Are some markets in market making or are they all reflective of the real market? And are you ready to accept it? It is crucial that you answer these questions before you start trading. In itself, as long as your broker is transparent and honest with you, this is not serious. On the other hand, if he tries to hide the reality of things, go your way.

Broker comparison online – Know Your Broker

Finally, it is not essential but always exciting to get more confident with his broker. Moreover to see the reality of his premises, the way it operates, the organization, etc. Also, getting closer with its partners will also create a more personal contact with them and can be useful for the rest of the relationship.

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