Starting a new business relationship with a company is always a nervous time. You don’t know what to expect and confidence is low. When it comes to forex brokers, there are good reasons to be wary because many brokers come and go every year.
Therefore, this brief guide will show you the 3 simple steps to test any agent you are working with for the first time. You’ll know why you want to send a test deposit, run some operations, and test the withdrawal process.
Before you begin, be sure to take the time to research the brokers before sending money. Read this guide to learn how to do prior research on runners.
But once you’ve done that, it’s time to test the runners you’ve selected. Follow these 3 simple steps to test your best options.
Step 1: Submit a test deposit
Once you’ve decided an agent you want to try, never send all your venture capital in the first place.
Send a little more than the minimum.
This is basically an agent stop loss. If the runner is not performing well or if he finds things about the runner that he does not like, in the worst case, he has a chance to get away from that runner without losing too much money.
The amount you send depends entirely on you. But, as an example, let’s say the minimum broker’s bill is $ 100. At first, we recommend that you send $ 300.
Remember that you are not trying to create your account yet. Just try the broker with real money. Some brokers may treat you very differently when you have a live account and a demo account.
Step 2: Perform some operations
Now run a few small jobs. It is best to do some short-term operations, just to test the system.
Be sure to try stop losses, pending tickets, profits, and any other order the broker offers.
There are a few things to look for here:
- Do you have the price you see on the screen or are there slips?
- How wide are the spreads?
- Are their stop losses answered, or are they triggered soon (remember you have to consider distribution and rollover)?
- Is it easy to run a trade or is the trade entry / exit process difficult?
- What kind of orders do they allow?
- Is commercial software reliable?
These questions will be answered very quickly after you have performed some operations. Some trading platforms also perform differently when performing live trading and demo operations.
You will never find out just by researching online or trading a demo account.
Take a moment to observe how their live system works and this will give you confidence to continue with them.
Step 3: Try a withdrawal
If you are happy with how the broker performs the operations, now it’s time to try the most important step in this process.
Get your money back!
First, find out the broker’s procedure for withdrawing money. It is usually posted on their website.
So if you have $ 300 in your account, see if you can get $ 100. The withdrawal fee can be expensive in relation to this small amount of money, but it is worth seeing how the whole process works.
If there is a withdrawal policy that has not been posted on the website, you will find out here.
Then perform the process and check how easy or difficult it is. If you have any questions, please do not hesitate to contact the broker support service.
Final thoughts on testing a forex broker
After doing these three simple steps, you will find out very quickly whether you want to deal with this agent or not.
If everything is checked, everything is system.
You will now have the confidence to send all your venture capital.
One last reminder: it’s a good idea not to send all your money to an agent, if you have a significant amount of money.
But now that you understand this testing process, it’s easy to test multiple runners that you might want to use at once.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.