Choosing a CFD broker looks a simple task at a first glance, but in reality, most of the retail traders work with 2 or more companies throughout their trading career. Although is good to text other services, the main reason why traders switch has to do with the poor quality of the brokers. If you don’t want to switch brokers for a few years in a row, we would like to talk about four of the most important qualities you must pay attention to.
Regulation
The top requirement in any retail CFD broker is regulation. That happens because there are conflicts on interests in the industry, meaning an unregulated broker can do a lot of things that are not supportive of its clients. At the same time, getting regulatory approval proves the broker is legit and there is at least a public agency monitoring its activity. Even though there could be other features you could skip, don’t do any compromise when it comes to regulation.
Trading Tools
A broker is your link with the financial markets and other than the usual features, the company you’re working with should provide a wide range of trading tools. Whether we talk about technical tools, fundamental tools, or educational resources, all can improve your trading performance. If you want to profit from the “growth trend”, then you’ll need all the tools possible.
Accessibility
This feature can mean the broker offers you access to a wide range of markets. If you want to have a diversified risk, then you’ll have to trade more instruments. At the same time, accessibility also refers to how easy will be for you to get in touch with a representative when you encounter a problem. Customer service is one of the big complaints among retail traders and a company that managed to solve it, is one you should be dealing with.
Track record
Competition in the CFD trading sector becomes even stronger now that so many companies showed up. Even though relatively new brokers could be reliable, as long as they meet all the above-mentioned requirements, working with a company that has a long track record in the industry will be the safest choice. If a company managed to survive for at least a few years, that means it provides reliable services and relies on a sustainable business model. Make sure the broker you want to work with had passed the test of time and if not, you have plenty of other options available.