Your success depends on choosing the best broker. The brokerage industry is ruthless, as brokers may not think twice to offer introductory brokers with ludicrously large commissions. These may reach 70% or higher, which are rates you shouldn’t fall for.
Think realistically and rationally, as legitimate trading companies bear heavy overhead costs such as advertisements, salaries, office spaces, customer care teams, permits, legal counsel, bills, and other deals.
Don’t Chase Extremely High Commissions
You’ll receive less than your expectations as it is financially impossible for a firm to hand 70% to 80% of its income with introductory brokers. It’s simply too good to be true, and promises like these are usually red flags. They may bamboozle you by manipulating the statistics.
The high commission may come with a minuscule duration that drops the percentage drastically afterward. If not, the commission could be calculated following broker expenses. Worse, it’s from a fraudulent institution on the brink of bankruptcy. To avoid such a scenario, you may first go to bestintroducingbrokers.com to verify.
Spare no expense in order to check the system yourself. Place a deposit, use it, and test the results before investing heavily.
Back then, people considered regulations important. However, the second Markets in Financial Instruments Directive or MiFID II led to the ban of introductory brokers in the EU market. Consequently, the regulations were rendered irrelevant in the industry. Instead, we now prioritize broker reputation and history.
How to Find the Right Broker
Oftentimes, the word “scam” appears next to the names of broker company names when you search on Google. While large corporations take note of this, it’s unfortunately inevitable. Trading involves significant risk, so customers usually send negative feedback. Some may even abuse specific search requests.
Alone, a cursory Google search is insufficient as you may get false or fake results. You should delve deeper into your prospect company and perform further research.
Ask yourself the following while doing research:
- When did the company start?
- Does it have an extensive positive record of achievements?
- How many traders work for the company?
- Is their website well-made?
- Does the company have an active social media presence and a stable customer base?
- Does it handle public relations superbly?
- Does it have free, excellent educational materials?
- Is their customer support swift in handling problems?
- Does it have sponsorships or charities that boost its publicity?
This list may go on, but the gist is to ensure your potential broker is trustworthy. Transparency serves as a solid ground for a dependable partnership, a trust bolsters it over the years. Always be hands-on when choosing a broker. Apply as a trader, perform trades, and check how much you get in return.
Keep in touch with your account manager frequently, and discuss probable methods of cooperation. They must satisfy your needs, so don’t think twice about asking for guidance and clarification. You may learn more about this topic on the IQ Option Introducing Broker platform.
Trading Platform
Choose the best trading platform where you can build your success. After all, you can’t expect great earnings from unpopular platforms. Brokers nowadays may buy software from a third party or provide their own. Of course, the expedient and cost-effective option is to get a third-party provider.
Most brokers use the MetaTrader platform, a name trusted by professionals for 15 years. Alternatively, CTrader is a trending option, but the best usually make their own platforms. Nevertheless, you have the final word, so choose your preferred platform and go with it.