By Nikolai Kuznetsov

The financial markets are now in sync across the globe to the extent that there is little that separates the level of services offers by various market participants. Regardless of this, service providers in the form of brokers, research, trading tools and platforms still continue to stream in a bid to getting a share of the cake.

So, why are there so many providers, yet the services offered are so similar in quality and quantity? Why not a just a few players since there is little that companies operating in this marketplace can use to differentiate themselves? And which are of the main features/factors that traders consider when choosing their broker? Which one stands out? These are some of the questions that circulate across the industry and to be a successful trader/investor they need a concrete answer.

Standout differences among brokers

According to research, most trading platforms are pretty the same, with a slight difference in loading and trade execution speed. There are also a few brokers that tend to be limited when it comes to additional services offering, while others simply luck enough trading tools and resources.

However, one of the most standout differences among most brokers according to various testimonials comes in the way of customer support. This is simply because most brokers ‘preach water while drinking wine’.

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NOTE: Not everyone who claims to offer 24/7 support delivers

Traders are looking for a personal touch with regard to their relationship with their brokers and as such, they want a broker who makes them feel that the service provider has got their best interest at heart. Generally, every broker wants to make money and this fact has blinded some to focusing on selling rather than service delivery. When you come across a broker who asks you when and how much you plan to invest amongst the first 3-5 questions, then you should be wary of the service you are likely to receive from them in the future.

Ideally, a good broker would start by analyzing your investment profile and this may involve questions like getting to know your residence, risk appetite, favorite investment vehicles (stocks, commodities, options, forex, binary options etc), as well as, experience in trading, your trading style, and time frame among others.

At the first stages, it is all about understanding you as a trader/investor, and not trying to get you signed up for a live trading account.

As a new trader, you can also learn more from your broker by assessing trader reaction from their social profile pages like Twitter, Facebook and Google+, as well as, reading reviews done by top independent websites.

You will find that most traders will definitely comment about the broker’s support services. This is not by accident, it is because it is one of the most important factors that traders look at these days when selecting a broker.

Beware of scams

After assessing all the factors that you consider critical in your efforts towards selecting a broker, the next thing is to ensure that your broker is by no means looking to take your money and run.

There have been several cases of scam brokers in the industry especially for those trading in forex and binary options and thus it is important to ensure that you are not handing your money to one of them.

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In addition, falling on to the hands of a scammer does not risk you losing the money that you deposit with them, but also endangers you from losing more money in cases where your identity and credit card information are stolen.

Online scam is one of the largest crimes that online traders should be aware of, and the process of differentiating the genuine broker from the scam broker falls squarely at the broker selection stage. In fact, governments are setting online crime units to combat this malice as many people continue to fall victim.

Conclusion

The bottom line is that, there are several factors that traders assess when selecting their broker, but only a few of these features/factors actually standout. These days, customer support ranks top, because when looking at the general platform performance as well as additional services and research tools, there is little difference.

However, only a few can actually offer effective customers support, and this has been verified through various testimonials as pointed out earlier in the article. In addition, not everyone actually lives up to their promise and there are also several scams going on that every trader should be aware of.

Therefore, when selecting your next broker, customer support has rank amongst your most important factors of consideration before finally making your investment decision. This could also be the perfect way of assessing whether or not your broker is likely to be a scam.

 

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