When you have made the decision to start trading, one important decision you must make has absolutely nothing to do with choosing the right trading instrument to trade. Before you invest even one single penny in the trading market, you have to find a broker for handling your trades. Online brokers are great for traders who are just getting started, but when there are dozens of options at your disposal, how do you select one that’s right for you? If you are on a quest to find a trustworthy broker, there are some tips that can come in handy. What are they? Check them out below:
- Investment options
If you are just starting out in the world of trading, you might think that the only instruments that you ca trade are stocks. However, it is not the case. There are a number of online brokerages that offer traders the opportunity of investing in a variety of financial instruments, such as forex, commodities, indices, purchase bonds, trade options and even exchange-traded funds. Before you choose a broker to start trading, you should consider what investment options they are providing to you. If you want a diversified portfolio, make sure the broker is offering you the options you need.
- Cost
While the fee charged by online brokers is less as compared to traditional brokers, but they are not all the same. This means that all of them have different charges and fees and you need to research them thoroughly in order to sure they are reasonable. The cost also depends on the instruments you wish to trade. You can find brokers that charge low costs and those that have high trading fee. If you plan on trading on a regular basis, you need to factor in how much you will be paying for every trade. Check the broker’s fee schedule because there are not just trading fee to be paid; you also have to pay account inactivity fee and other charges. Consider all of them because they will constitute your total trading cost.
- Minimum deposit
You will come across some brokers who will allow you to open an account without making any deposit up front. But, there are also those that ask you to bring something to the table to get started. The minimum deposit can vary for every broker. It is a good idea to look for a broker that doesn’t ask for a high minimum deposit because it is usually shady brokers who do that. Legitimate brokerages like HFTrading keep a reasonable minimum deposit to give every trader the opportunity to trade. It is important to pay attention to the minimum deposit so you are not caught-off guard when you are ready to get started.
- Availability
If you run into any issues or problems when you are trying to execute a trade, you will need to get in touch with the broker to get it resolved. If you are unable to get through to someone right away, there is a good chance that you will suffer from a big financial loss. When you are comparing brokers, you need to check when their customer support representatives are available and the channels available to reach out to them. It is best to choose a brokerage that gives you multiple ways of connecting via live chat, telephone or email. Even if you don’t have to call in customer service ever, it is comforting to know that you have the option. Plus, it is a good idea to give them a test run to see if they are knowledgeable and capable of providing assistance.
- Educational resources
If you are new to the world of trading, you will need to expand your knowledge and learn new trading skills and strategies. While the internet offers a lot of information, not all of it is accurate, reliable and up to date. Therefore, most brokers are known to provide educational resources to assist their clients. When you are in the middle of choosing a broker, make sure they provide more than adequate educational resources to help you master the art of trading. There are brokerages like HFTrading that make a lot of effort into compiling detailed and in-depth resources for their clients. In addition, they also keep them updated to ensure traders are aware of the latest ongoing in the market.
- Research tools
One last thing you should consider for choosing a trustworthy broker are the type of research tools that a broker offers. These usually depend on the trading platform that is being provided and it is definitely worth a second look because a major portion of your trading experience depends on it. Not all brokers are generous in this regard so a thorough comparison is highly recommended for making the best choice for yourself.