Choose the Best Monero Broker
Choosing the best monero broker can be more difficult than it looks, due to the countless choice and the different needs of each trader. This is why we listed below the key factors that you should keep in mind when making your decision:
Reputation and years of experience
Despite not being the only factor worth considering, the number of years that a monero broker has on the market can give you a good level of assurance on the experience and reliability of the provider. Before choosing a monero broker over another one, make sure to check out its history, whether it is owned by another group, whether it recently went through a merge or acquisition and its reputation.
Service
When selecting a monero broker, you should consider the additional services offered as well. In our experience the most important ones are the availability of high quality knowledge material and a 24/5 or 24/7 customer service. This will allow you to trade with confidence, having the peace of mind of always being able to find the support required independently from your level of expertise and time of the day.
Spread and leverage
The spread and leverage offered by e a monero broker are important factors to take into account before making your choice, as they will strongly influence the amount of profits that you will be able to make. At a general level, the lower the spread and the higher the leverage, the better. But what are they exactly? The spread, usually indicated in pips, is the difference between the price that you have to pay to buy an assets and the price that you would get by selling it. Therefore, the higher the spread, the harder it is to make profits, and this is why monero broker offering lower spreads are often considered favourites. The leverage (e.g. 100:1, 200:1 etc.) is the amount by which an investor can increase his potential returns of an investment. For example, if you invest $1 with leverage 200:1 and a return of 10%, you will make profits “as if” you invested $200 instead of $1 (which is $20 instead of $2). Therefore, the higher the leverage offered, the higher is your possibility to make big profits. This however, comes also with higher risks, as leverage inflates both profits and losses.
Compliance and Regulation
Last but not least, it is always important to check whether your selected broker is regulated, in order to understand how the integrity of the market, traders, and investors are protected. The regulatory body might differ according to the country the broker is registered in. Some common examples are the Financial Conduct Authority (FCA) in the UK, the Cyprus Investment Firm (CIF) and the Exchange Commission (CySEC) in Cyprus, the Autorité des Marchés Financiers (AMF) in France and the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) in Germany. We always advice to open an account with a regulated broker.
