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Beginning traders often ask us how to choose a good broker. In this regard, a few tips.

Choose a good, big broker in your country. In case of a legal dispute, you always have a chance.

The best are big brokers from the USA, France, UK, Germany, Denmark, Switzerland - countries with strong financial regulations. Big brokers from Australia and Japan are also OK. I would avoid small countries, usually their financial regulations are worse and their execution is problematic.

Definitely avoid brokers from unregulated countries. Avoid brokers from tax havens and faraway countries. In case of a legal dispute - you will lose the case with a very high probability.

Many times I have heard stories about how brokers from tax havens disappear with clients’ money. This was, is and will be the case as long as they find clients willing to deposit money to an unknown company. Do not!You should choose the best, big brokers with good reputation, from countries with good financial regulations and efficient law enforcement agencies. There are a lot of good brokers out there, there really is something to choose from and there is no point in taking any chances.

Don’t just go by price/commissions!

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Tho Dang Phuoc

Lvl 8
7mo ago

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