It’s always nerve-wracking to begin a new partnership with a Forex Broker. You have no idea what to expect, and your level of trust is minimal. There’s a need to be cautious when it comes to Forex brokers because many of them come and go every year.
So, in this brief guide, I’ll show you how to test out any forex broker for the first time in three simple steps. You’ll discover why you should send a test deposit, how to make a few trades, and how to withdraw money.
Before you begin, make sure you take the time to investigate brokers before sending any money.
Step 1: Make a test deposit.
Once you’ve settled on a broker to try out, never put all of your risk capital into it right away.
Send a few dollars more than the basic minimum.
In the worst-case situation, you can walk away from the broker without losing too much money if the broker does not perform well or if you learn anything about the broker that you do not like.
It is entirely up to you how much you would send. Let’s imagine, for example, the broker’s account minimum is $100. Initially, you might consider sending $300.
Keep in mind that you are not yet attempting to construct your account. You’re simply putting your money on the line to see how well the broker performs. When you have a genuine account versus a demo account, some brokers may treat you differently.
Step 2: Place Some Trades
Execute a couple of modest deals now. It’s recommended to start with a few short-term trades to get a feel for the system.
Make sure to try out the broker’s stop losses, pending entry, take profits, and any other order types.
There are a few things to keep an eye out for:
- Is the price you see on the screen the price you get, or is there a difference?
- What are the spreads like?
- Are your stop losses honored, or are they triggered too soon (be sure to account for the spread and rollover)?
- Is it simple to execute a transaction, or is the procedure of entering and exiting a trade cumbersome?
- What types of orders do they accept?
- Is the trading program
After a few trades, you’ll have a lot of answers to these queries. When it comes to live trading vs. demo trading, some trading platforms behave differently.
You won’t learn these things by doing online research or trading on a demo account.
So take some time to examine how their live system operates before deciding whether or not to continue working with them.
Step 3: Test a Withdrawal from the forex broker
If you’re satisfied with the broker’s deal execution, it’s time to test the most crucial phase in the process.
Recovering your funds!
To begin, learn how to withdraw money from your broker. It is frequently made available on their website.
Look for “withdraw money from [your broker’s name]” on the internet.
So, if you put $3,000 in your account, see whether you can withdraw $500. Although the withdrawal charge is high in comparison to the amount of money involved, it is worthwhile to understand how the complete procedure works.
If there are any withdrawal policies that haven’t been made public on the website, you’ll learn about them here.
Then go through the process yourself to see how easy or difficult it is. and if you have any concerns do not hesitate to call the broker’s support and ask about every detail you need to know.
A second withdrawal is also something I would advocate. Even if the first withdrawal went easily, unexpected complications can arise on the second.
Final Thoughts on Testing a Forex Broker
After following these three simple procedures, you’ll know whether or not you wish to work with that broker.
It’s all systems go if everything checks out!
You can now send in all of your risk capital with confidence.
Last but not least, if you have a big quantity of money, it’s a good idea not to send it all to one broker.
However, now that you understand the testing procedure, it’s simple to test numerous brokers at the same time.
If you still have doubts about your broker, Do not hesitate to fill out the form below and one of our representatives will contact you and help you out!
