How to choose the best Forex trading companies?
The best forex trading companies, financial brokerage firms are institutions that provide brokerage service between the seller and the buyer in the financial markets for a specific commission, and this is done through trading platforms provided by these companies to investors, through which transactions are executed at any time without obstacles, this is because These markets are characterized by the availability of liquidity all the time.
The process of choosing a Forex company is one of the most important decisions facing investors or those who think about trading in the Forex market, as dozens of trading companies compete with each other to provide the best services. These companies try to distinguish themselves by responding to the needs and desires of investors in the financial markets to attract the largest number of them in order to open trading accounts with them.
What is the commission of financial brokerage firms?
The “spread” – the difference between the bid and ask price – is the main commission that trading firms get from investors in the financial markets. This commission is obtained by the company when the deal is opened directly, and the brokerage firms get this commission regardless of the outcome of the deal, whether they are winning or losing, and avoiding forex trading losses, such as making a profit from petroleum trading, metal trading, gold bullion trading, gold trading, precious metal trading.
It is also known that companies that trade currencies and various financial assets increase the value of their commission the greater the amount of money that is traded, and for this reason only these companies provide traders with what is known as leverage. A trader, when using leverage, increases the amount of transactions opened, which automatically results in an increase in Forex commission commission.
For example, suppose a currency trading company charges a “spread” commission on the euro-dollar pair of $ 3 points, and the actual account capital is $ 10,000, in which case the point value is $ 1. That is, the company’s commission value on each EURUSD deal is $ 3 without using leverage.
But if the trader wants to use a leverage of 10: 1, in this case the amount that is traded becomes $ 100,000, and the point value becomes $ 10, which means that the value of the company’s commission will become $ 30 for every transaction in which the leverage is used Its amount is 10 times.
How do I choose a trading company?
First: Regulation and licensing – the licenses obtained by trading companies to conduct their business
As the most important and first thing a trader should search for before choosing the company with which he will work is the license of this company or not, where unfortunately large numbers of fraudsters took advantage of this phenomenon and established fake companies for fraud and stealing people’s money under the name of Forex companies, and unfortunately the large numbers From this company directed towards the Arab world.
Second: Fees and commissions imposed by trading companies
Where the brokerage firms in the financial markets charge a commission for the services they provide, the types of fees and commissions charged by the companies can be highlighted as follows:
Spread: It is the main commission that you charge for the brokerage service, as mentioned earlier, and it is the difference between the sale price and the purchase price.
Swap Commission: This is a commission that trading companies charge for deals that remain open for a certain number of nights and days. In accordance with the provisions of Islamic Sharia and after extensive research, the swap commission is prohibited. Therefore, companies that provide an Islamic trading account do not charge this commission to those who use this type of account.
Withdrawal and deposit fees: Some companies impose additional fees on withdrawals and deposits. This fee may be a fixed value on every withdrawal or deposit, or it may be a percentage of the amount deposited or to be withdrawn.
Inactivity Fee: It is a commission that some Forex companies impose on accounts where no deal is opened for a specified period. Some companies, for example, impose this commission if the trader has not executed any deal within a period of 3 months, others within 6 months, and so on.
Commissions for additional services provided by companies: Some trading companies provide additional services that are not present in other companies and charge certain fees in exchange for allowing the trader to use such tools and services.