What Makes a Reputable Online Broker?

tradingThe financial market is currently easier to reach than ever before. The only thing that financial experts or hobby traders have to do is create a user account with an online broker.

This gives you access to numerous financial products, trading opportunities, tips and tricks as well as technical analysis tools. The easy accessibility of the market as well as the good prospects for profits have led to more and more people registering with an online broker. The great demand has, of course, led to a large supply of suppliers in the meantime. It is not unusual for a newcomer to the market not to be sure which broker is safe and reputable. For this reason, the following article explains the most important characteristics of a high-quality provider and the most important facts about trading on the financial market.

Protection through state regulation

The most important feature when searching for an online broker is the license. This is the indicator for payment. As a customer you can be sure that the online broker as well as his offer is secure. They are permanently inspected by various state authorities and receive a license for their services. This is not unique or life-long, but can also be withdrawn under circumstances. So if you see a valid license on the website of an online broker, you can be sure that it is up to date. The licence granted by a regulatory authority certifies the seriousness and trustworthiness of the company in terms of its offer, services, data and, of course, financial resources.

The quality seals for a safe and good offer

A further quality feature, which exists for the security of the offer and for the customer, are the test seals and certificates. These come from different public and private instances. Similar to a seal of quality on a product in a supermarket, the certificates issued by an online broker provide information about the range and other services offered by the platform. For example, certificates are issued for good customer support, a wide range of financial products or if the information provided on the site is particularly extensive. The certificates received are usually displayed together with the licenses directly on the start page, so that visitors can be sure at first glance that they have found a good and reputable provider. Actually a matter of course, since that is the sign of quality.

These signs can be seen as a warm sign

Some of the online brokers advertise with people in chic vehicles, under palm trees or in large homes. Of course, it is not impossible to get rich with trading on the financial market, but it is a long and complex undertaking with many hurdles and obstacles. Therefore, promises of large profits without risk are to be seen as a warning sign, since earning money on the financial market is not easy, of course. If a vendor does not display warnings or notices on the platform, an important component for a good relationship between the customer and the vendor is missing – trust. Other signs are huge bonus payments of 500 euros and more or even generous bonuses. Even the big online brokers don’t have the money to give it away. This is usually a lure method to then expose the customer to further rip-offs later on. An example of this is blocking the user account without warning or justification. This usually happens when a trader is successful in the market and regularly makes big profits. Thus the money made goes into the pockets of the providers and not into the bank account of the trader who had earned the money. More information about fraud on the Internet, what signs and dangers there are and how to protect yourself against unsafe providers can be found on Asktraders.

The provision of information

Trading and participation in the financial market is risky. However, with the right information and tools, it is possible to minimise the risk. The financial products are traded differently. For example, by buying a share you can invest the money over the long term, sell it again after an increase in value or bet on price developments. In order to be able to estimate in which direction the price will go and whether the investment of a share purchase is worthwhile, one must be informed about the market and its influences. This includes dealing with political, economic and social issues and being able to evaluate them. A good broker provides the most important information on his own platform. A major advantage of this is that the news and topic blogs are accompanied by further assessments from experienced brokers as to how these developments will be reflected in the financial market.

Tools for successful trading

In addition to the news provided, there are further tips and tricks for successful trading available on the platform of a reputable online broker. These mostly come from experienced traders who describe their first experiences on the market, how they made mistakes, what they learned and how to proceed in order to act successfully in the long run. This also includes explanations of the technical analysis tools. Each tool analyses the market and the chart in different ways and gives hints on the price development by the result. Thus it is possible to have the market analysed by technical aids and to further minimize the risk. However, one must be able to interpret the results correctly. A good online broker will explain in detail how to use and interpret the analysis tools.

Finding the right broker

In order to make the search for a reputable provider easier and faster, it is advisable to search for online brokers on comparison sites. The above link, for example, lists the major brokers with the most important information. Ideally, only providers with a valid license and certificates can be found there. This means that the most important safety criterion has already been met. In addition, there is a detailed test report for each individual provider in which the quality of the offer, the security of the platform, the mass of information and the provision of analysis tools are individually evaluated and explained. One characteristic to be taken into account when making your selection is the demo account. With this you can trade all financial products and use analysis tools, but with this account you only trade with virtual money. Thus, the risk factor can be reduced to zero and you can gain initial experience without risking losses.

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