Not all Forex brokers are the same and offer different services. When you’re trading forex, you need the best. In this article, we will examine the characteristics of a suitable broker and, along with it, we will list the advantages of the MondFX broker.
Definition of broker
First of all, we need to know the concept of broker. A forex broker is a person or entity that facilitates the buying and selling of foreign currencies for you as a trader. MondFX Group is an example of a forex broker and acts as an intermediary between the trader and the bank. This allows you to trade on the fluctuation of the value of an asset or currency pair and earn profit from these trades without the need for physical purchase.
Trading in forex means predicting the price of one currency against the price of another currency. Since you don’t actually own any notes or coins and only predict their value, as a trader you need a platform to make these predictions. The provider of this platform is your broker.
Broker selection guide
The Forex market is the most volatile and liquid market in the world. Obviously, to operate in this market, you need a broker that you can trust and count on. Next, we will examine the features of a reliable broker.
- Being regular
The first and most important point when choosing a broker is to be regulated and strictly follow the rules and regulations by them. You should work with institutions that are fully legitimate, because these institutions will manage your forex trading and have access to your funds.
MondFX broker is registered in Saint Lucia and licensed by the International Companies Authority of Saint Lucia under license number 00109-2024. This means that MondFX is regulated by legal entities and follows specific global regulations.
Hence, the trader’s capital is fully protected and the broker is not allowed to use this capital for his business activities.
- Amount of leverage and margin
Leverage and margin levels are other features that should be considered when choosing a broker.
The concept of leverage means that a major part of your position size is temporarily borrowed from your broker. When entering a forex trade, you pay a percentage of its value, called margin, and the broker provides the rest.
This means that the initial cost to open a trade is only a fraction of the actual position size, but profits and losses are calculated based on the full value of the trade. This means that both profits and losses can be significantly greater than your margin amount.
The high amount of leverage allows you to earn more profit than normal with a small amount of capital. However, this means that you are also at risk of heavier losses that could result in the loss of your entire capital.
When researching brokers, you may come across very high leverages, which are as tempting as they are dangerous.
Another thing that has recently become common among brokers is offering floating leverage. This means that the leverage of the trader’s account will no longer be fixed and the broker can change the leverage at different times. This may lead to limiting the trader’s profit in volatile market conditions.
In MondFX Broker, the leverages offered are fixed in all market conditions and do not change even during the time of announcement.
- Spread and commission rate
The margin rate you pay to open a position isn’t the only fee you have to pay. When trading in Forex, you will pay a fee called spread.
The spread is actually the difference between the bid and ask price when opening a forex trade. In MondFX, the trading spread is exactly the amount announced by the bank, and no increase occurs.
To trade in MondFX, the only cost you pay to the broker is the commission. The total cost of commission and spread in MondFX makes transactions in this broker less expensive than other forex brokers.
- Deposit and withdrawal
With many forex brokers, there may be additional transaction fees. It is important to know these fees before you start working with them.
Hidden costs can show themselves especially in the initial deposit and withdrawal of profits from the account.
In MondFX, there is no deposit fee, and the only amount that the trader pays is the cost of the transaction itself. Also, the deposited amount will be immediately applied to the trader’s account.
In withdrawal, for amounts less than 500 dollars, 3 dollars and for higher amounts, half a percent of the amount is deducted from the trader’s account as a fee. The duration of depositing the amount to the trader’s account varies from a few minutes to a few hours in proportion to the withdrawal amount.
- Trading platforms
All forex brokers use some kind of platform. This platform is the tool you will use to make real forex trades. But not all platforms are the same and not all brokers offer the same variety of platforms to choose from.
MondFX Broker currently uses the Metatrader 5 platform, which is a well-known and widely used platform worldwide. Through this platform, you will have the ability to make transactions and also be informed of the exact spread rate of trading symbols.
- Trading hours
The forex world never sleeps. It is the largest and most liquid market on the planet. where the value of daily transactions reaches trillions of dollars.
The main forex centers include London, New York, Tokyo and Sydney, but in these places thousands of currencies from countries with completely different time zones are traded. All these factors make Forex an international and 24-hour market.
For this reason, it is vital to choose a forex broker that can offer you more trading hours.
- Number of trading symbols
As a forex trader, it is not only important to have access to maximum trading hours, but also to have the most number of currency pairs and trading symbols. Each currency pair has its own advantages and disadvantages, volatility levels and unique opportunities.
At MondFX we offer traders over 800 trading symbols including currency pairs, indices, metals, commodities, global corporate stocks and cryptocurrencies.
- Available educational tools
It is very helpful to find a broker that provides educational resources about forex and helps you on your way to improve your trading. Simply put, the more you know about forex trading, the more likely you are to succeed in your trading journey and increase your chances of making a profit and reduce the possibility of losing.
You can increase your trading knowledge and skills by reading the educational articles on the MondFX blog and become a better trader.
In addition, if you are looking to improve your skills as a professional trader, the comprehensive course “Zero to Hero” Forex Training by Mohammad Ahangari Asl can be a suitable option.
This course will prepare you for the challenges of the financial market by fully covering topics from introductory to advanced. By learning professional trading strategies and risk management techniques, you can increase your chances of success in the competitive world of trading. To get more information and register for this training course, take action now and take a big step towards becoming a professional in Forex.
- Support
Obviously, you will need support at times, even if your strategy is well designed. In addition to choosing an online broker with the right platform, it is important that their customer service is accessible and helpful.
This is especially important for forex traders where trades can take place at irregular hours and many platforms are based in other countries. If so, what are their customer support hours like? Will they be able to answer your questions when needed?
You can trade Forex 24 hours a day, 5 days a week with MondFX. In addition, 24-hour support on all days of the week makes you always be sure of the security of your capital.
If you are a beginner forex trader who has not yet started trading with us, you can use our customer service team to get one-on-one guidance on our platform while setting up your account.
- Execution speed
In forex trading, where the market experiences extreme fluctuations, the speed of execution of orders and transactions is very important. If the speed of opening trades in a broker is not suitable, it will cause your trades to be opened at a point other than your desired point and affect your profit or loss.
This phenomenon is called slippage in the forex market.
In MondFX Broker, transactions are done instantly and there is no significant slippage. At the time of announcing the news, no significant change has been made and the traders have the ability to enter the transaction easily.
The last word
Choosing the best forex broker for you largely depends on your trading style and the goals you hope to achieve. But in general, a broker should have low hidden costs in addition to 24-hour support and high speed.
Stability of leverage and low change of spread during transactions are other features that you should pay attention to when choosing a broker.
Ultimately, the only way to find out which forex broker is right for you is to try the platforms on a demo account and see which one suits your trading strategy best.
You can use the link below to open an account in MondFX and use the demo account.