How to choose a broker

Currently, access services on the international currency forex market in World provides dozens of brokers. They can be divided into several categories, the most popular of which - banks, large brokerage houses Western and dealing centers. What are their differences?

According to experts, more reliable intermediaries are Russian banks, because their activity is controlled by a regulator - the Russian central bank. Banks acting as brokers in the market forex, are licensed by the Central Bank foreign currency transactions and to work with physical persons. Currently, the most reliable option for private investors, as it almost eliminated the fraudulent activities and therefore the risk of losing money from his account.

Among the Russian traders also are popular major western brokerage houses with a solid reputation. However, their activities are not regulated by Russian law, which carries some risk for investors. In the stories were already known cases of bankruptcy and major Western brokers.

Dealing centers mostly created offshore companies, whose activities are not regulated by Russian law. Therefore, all transactions will be abroad. A dealing center is likely to provide only information services (software, quotes, etc.). In case of problems they have to deal with offshore jurisdictions. Note that in Russia there is no regulatory body that would have followed the activities of companies in the OTC foreign exchange market, which is the forex.

Also in Russia deals on the forex market can be entered through the bookmakers, who operate under a license Goskomsport. However, work through a mediator - it is already playing in a literal sense, and it is governed by the rules of the game, and not contract. This will be a certain imitation of trades naforex as betting firm does not perform transactions in foreign currency and not credit their customers. It concludes with a client to bet that you can both win and lose.

So, when assessing the reliability of the broker must take into account the term of its work, its history, ownership of the regulators, the reputation in the market. The big plus for the insurance broker is his responsibility to customers. Also, always be considered a contract - is in many cases to avoid further problems. Before choosing a broker should also review specialized resources with ratings of brokers and thematic web-based forums.

The second important point, which is taken into account when choosing a broker - is its tariffs. Unlike the stock market is virtually no one commission, and the broker earns only on so-called spread - the difference between buying and selling. Brokers typically offer a fixed spread, which means it does not change, regardless of any movement on the market. But there are also brokers who work with a floating spread, when in an unstable situation on the market, abrupt movements of quotations, the spread increases. The second option could bring additional costs to the trader. Also, do not always choose the right broker only on the basis of its tariffs. Choosing dumping broker, sometimes you can get an unreliable intermediary with poor service.

Also, when choosing a broker should know which terminal uses the company. You may also want to check it will work by downloading a demo version of the program. Good terminal should provide graphics, technical analysis, news and analytics. In addition, the broker should provide technical support to clients, the ideal option would be to clock support.