Choosing a Forex Broker


In case of placing significant funds at the broker, no harm will ask what guarantees the safety of your funds will give you a broker. In England and the U.S. with such guarantees can be segregated accounts and guarantees the refund from the government. In Russia and other countries, robust unregulated brokers are interested in a particular way to address this issue. For example, Russian brokers "Kalita-Finance" and "Akmos Trade" to insure our commitment to our customers in the insurance companies "Ingosstrakh" and "Concord", respectively. However, this is not the only way to show customers their reliability. This could be, for example, guarantee a large American or European bank or some other method.

At the beginning of cooperation with some companies, it is important to pay attention to the contract that you sign and on the basis of which then have to work (God forbid sue). Contract must fully describe all material terms of your interaction with the broker on the basis of civil law.

Big companies in their activity by not only the contract, but also the public regulation of the transaction, of the transactions, which defines all of the many nuances (trading conditions, types of orders, disputes, etc.). Lack of regulations should alert potential client. If you want to work with a domestic broker, and for financial settlement you are offered a foreign company or even offshore - is an occasion to reflect. Think about how and where disputes will be decided how you will transfer the money. Settlements with foreign firms (not even necessarily offshore) may fall under the "antiotmyvochnogo" company, both in Russia and abroad. Is it nice if your money is "hung" on the current account in a bank or trading account will be blocked just because you - the citizen of Russia? Again, your interest payments may eventually show the tax authorities of your place of residence.

In Russia, many brokers work on "betting" scheme (for example, Forex Club, E-Capital), offering its clients to bet on the exchange rate. Here it is also important to understand in advance and be prepared for the fact that in the event of a dispute, your "bet" under Russian law, equal to the transactions "bet", ie not subject to judicial protection.

Risk management. Many traders often ask, "Where does my winnings in case of a successful transaction? '. Usually the work of dealing center is organized as follows: minor position broker "assumes", ie acts by the other party, and large transfers to a larger company. Thus, the gain is paid by or loss of other clients, or out of pocket (which is, incidentally, is why a reliable broker must be a large amount of equity, financial reserves). A large positions, usually the amount of 1 million and above, is shifted to larger parties (banks, for example). This transfer of risk is called overriding the net position. Often in small start-up companies are not overlapping, and customers are at risk in the event of a big win left with nothing. Therefore, it is important to gently find out how to organize the procedure of risk management in the company and where the dealing desk closes the net position. Of course, all the details you do not tell (a trade secret), but something will be able to find out for sure. If your broker flatly refused to speak on the subject, it is again a reason to think - whether you need this broker.