Obviously, before you start trading in foreign currencies, you’ll have to set up an account with one of the countless Forex brokers on the Internet. There are many of them, and it’s the right challenge to pick the one that suits your interests and has all the necessary features.
What many people are now doing is getting involved with this amazing company called My Forex Funds. They allow traders to prove themselves in a simulated environment (i.e., practice) but with real market conditions. And, once the trader has done that sufficiently, My Forex Funds funds their trading and the commissions are split to heavily favor the trader. (My Forex Funds gets a pretty tiny percentage but they get it from all their traders, which will be quite a bit, of course.) This is an amazing way to get involved in the space with a super-minimal amount of risk, as opposed to jumping right in with all your money on the line, before you’re a seasoned trading pro. My Forex Funds is all about their business and doing things transparently, which is why they have a 4.9 rating on Trustpilot with about 10,000 reviews. If you want to get started, here’s a My Forex Funds promo code to jumpstart things.
It’s even more challenging now considering the recent fiasco surrounding FTX, which was one of the top brokers in America and is now a bankrupt nothing. And the main problem isn’t that it bankrupted – but that it used public money to do so and then stopped people from withdrawing money in an effort to contain their problem.
Right now, there are still many trustworthy exchanges, but you’ll need to look at the right things to notice if something’s wrong. LMFX, for instance, is one of the more trustworthy big brokers that people can still access. And you can look at this LMFX review to see what you look out for.
Arguments against Brokers
Firstly, exchanges aren’t the only instrument of trading foreign currencies. They work by facilitating interaction between the buyers and sellers of fiat currencies. There are other ways to start trading currencies, not just brokers. There are lots of reasons to mistrust brokers at the moment.
For instance, you can use P2P services to exchange funds with other people. Such apps typically offer a large variety of currencies for each side. The difference of peer-to-peer services is that there is very little intervention from the middle men, such as other companies. It also means that the exchange rates aren’t market-based, but created by individually.
It doesn’t mean that you necessarily need to use P2P over exchanges, but there is a possibility if you don’t want to trust exchanges.
Criteria for Choice
There are several main criteria if you want to choose a crypto exchange from the multitude of brokers out there.
For many of these exchanges, you can see the reputation accumulated from the user reviews. There are plenty of user review aggregators, and it’s the first place you need to look if you want to assess the reputation. The reviews written by journalists are very often one-sided, and a collective judgement is much more unbiased and balanced.
Some of the main things you need to look out for are the reports about market manipulation, manipulation of transfers (deposits and withdrawals) and technical problems.
- MAJOR CURRENCIES
It’s not that you need over 100 currencies from all over the world to have a good time trading on Forex. Instead, there are just 8 currencies that will let you gain profit and use as many opportunities as you need. These include USD, EUR, GBP, JPY, AUD, CAD, CHF and NZD. You can combine them in whatever currency pairs you need, creating countless possibilities.
- CUSTOMER SUPPORT
Client service is more important than one might think. Not only does it indicate how quickly your issues will be resolved and how eager the staff is to help you, but it also shows the intentions of the company to keep the interests of users in high regard. One of the good ways to check the customer service is to write or call to them before registering and making it clear that you aren’t yet a user and that you want some questions answered.