The Internet has given us the possibility of investing from home or from practically anywhere we are. With a good connection and a suitable computer, you can make money on the stock market. However, finding the best, safe and reliable brokers is not that simple. The offer is very wide and it is easy for fraud to go unnoticed.
How do you know which are the best brokers?
Investing online has great potential as a tool to make us earn money in the financial markets. Taking advantage of it depends largely on knowing how to choose the best brokers, since thanks to them, we can invest in CFDs, binary options, Forex …
As for investors, well, each one can take the investment in a different way; for some it is a job, for others a game and for others a way to get extra money. But absolutely all of them have two goals in common: to make money and not to be scammed. Online brokers mainly target these three types of audience.
Let’s talk now about the advantages of investing with the best brokers to invest online :
In addition to being able to operate from the comfort of home, working online allows: on the one hand, saving on transaction fees, since these are low or nil. It can also be diversified according to economic and geographic sectors. There is also availability to invest 24 hours a day, since there is always an active market. Likewise, it is possible to operate both downwards and upwards and with leverage.
What are the best brokers to invest in?
Here the most important criterion of all is to choose SAFE brokers that allow you to withdraw your money without difficulty. Already, from there, the main criteria that you must take into account are…
First and key: investigate if a broker is reliable or could be a scam. This is done by observing their terms and conditions very well. You must see that they are clear and not be influenced by the opinions of the users, since these can be biased according to the experience of each one.
You are going to ask me: how can I know then if a broker is reliable or not?
Well, you can do it by checking if they are properly regulated. Check that they are registered in a country of the European Union, and that they comply with the MiFID directive. This forces them to take security measures that other brokers, who are not regulated, may not take.
You can also find out if the broker encrypts the information or not, so that your data is protected.
Make sure you also read the terms and conditions regarding the welcome bonuses. If you accept them, and then you have problems, you will find yourself involved in an infinite loop of complaints.
Another guarantee of the best brokers is that they have an identity verification system. This allows you to secure the requirements so that you can withdraw or deposit money in your account.
To have an extra point of confidence, see that the company has a real physical address where you can contact it without problem. It is not a key piece of information, but it is one more point in favor.
Likewise, and although it does not guarantee anything, the best brokers have a customer service, which better or worse, is available to their users.
Going through these points, you will get a general image that tells you if you are dealing with brokers of doubtful credibility or not.
With these security checks done, you would now have to weigh other weighty features. For example:
Look at what services each broker offers you (does it have enough assets? Does it have those that interest you?)
Keep in mind that having enough room for maneuver to operate from anywhere requires (or should require) a stable mobile App, which allows you to work away from your computer.
Evaluate the requirements of the welcome bonuses, because it is also very important. What do you need to do to benefit from them? How much can you really get?
Forex , stocks or cryptocurrencies
How can we know which are the best brokers to invest depending on whether we do Forex, stocks or cryptocurrencies. I give you a few tips for each case.
Let’s start with Forex, in which case, one of the most important things to keep in mind is the selection of your broker. This is so important that even if you have experience trading currencies, if you do not choose your broker well, you may not make a profit or you may even have a loss. Meeting your needs is extremely important in this regard.
Before deciding, you must be clear about what you need and what you are looking for by analyzing the type of trader you are and the type of operation that suits you best.
Only then do you keep five key questions in mind when choosing your broker:
- That it is duly regulated by certified entities.
- Determine the type of broker you are interested in: what type of trading they use (with a trading desk, without a trading desk, etc.)
- What trading platform they use and if it suits your needs.
- What does the broker offer you in terms of leverage and if it fits your strategies.
- Research the broker’s level of customer service (response times, etc.)
We now turn to actions. To choose a suitable broker if you want to invest in stocks, the best thing is that, in addition to taking into account the considerations that I have already mentioned for Forex, you also ask yourself the following:
- Markets you want to trade
- If you want to make a profit through dividends
- If you will operate more in the short term or long
- And if you are interested in trading more in cash or in derivative products .
Finally, we discuss the best brokers to operate with cryptocurrencies. In this regard, and again taking into account the general considerations that we have already mentioned, I will clarify the following …
First, keep in mind that the cryptocurrency market is not an official market (except perhaps for Bitcoin). We are talking about a decentralized market, which has neither regulation nor clearinghouse. That is why it is super important that you choose your broker or intermediary very well, who is well regulated. It is always important, but here, if possible, even more.
Online Forex and CFD brokers are usually duly authorized, since their markets have these same characteristics. You can orient yourself there.
Where can you check the regulation of a broker? My advice is that you look at the public record of the body that is responsible for the supervision of the country in which said broker is based. It is also highly recommended to verify that this body is rigorous and enjoys a certain recognized prestige . That will give you more security when making your choice.
Likewise, it is interesting that a broker that has cryptocurrencies among its available instruments facilitates the use of an operations platform that allows you to operate with them through the necessary and appropriate instruments.
As for leverage, there are brokers that require a minimum deposit at the beginning, although all of these are usually regulated by a body belonging to the European Union, normally the ESMA. This regulation limits the maximum leverage to trade cryptocurrencies to 2: 1. So if you decide to hire a broker that is regulated outside of this common territory, the leverage you can have will be higher. But keep in mind that you will waive certain guarantees provided by these regulatory standards.
I don’t want to close today’s post without telling you about demo accounts.
Any platform offered by a broker and that is really worth it, will give you the option of working on a demo account. And it is through them that you can really verify the effectiveness of their services, their commissions and the way of working both of the platform itself and of the broker itself.
Remember that a demo account is a trading simulator with which you can recreate operations as if you were in the real market using fictitious capital. And that a broker offers you this possibility to have a period of practice and learning without risk is essential to increase your experience before jumping into the real markets.
Good brokers know the importance of this, and for that reason, they usually always offer a demo service, usually free of charge, without time limitation and with enough virtual capital so that you can try different strategies, as well as discover and check if you they make up for the services they offer.
Investing online is a great opportunity, but when choosing a platform you must be very careful and do a very scrupulous preliminary research . The best brokers usually beat all the points I have mentioned.
My recommendation is that you do not stop doing this preliminary analysis, because otherwise, you can get an unpleasant surprise and lose a lot of money.