Trading in synthetic indices attracts investors who are interested in diversifying their portfolios by exploring various trading options. Synthetic indices are artificial, but they simulate real-world markets. They aren’t tied to any assets or real products, making them available for trading 24/7.
This innovative approach has attracted a larger number of traders, especially those living in countries where they cannot access stock exchange markets due to different time zones. But with so many brokers offering synthetic indices, how do you find the best one?
Trustworthiness and Regulations
These are the hallmarks of legit brokers, whether you are trading real stocks or synthetic indices. Ensure that the broker has a valid regulatory status. Regulated brokers are monitored by relevant financial authorities, ensuring that they adhere to strict standards of transparency.
Brokers running with no regulatory compliance are a risk for any trader. They will bait you with handsome returns and attractive features, but you run the risk of losing all your money via potential fraud or mismanagement of funds.
Cross-Platform Support
The trading platform is your window to the synthetic markets, so find a trader with a user-friendly and easy-to-use platform or application. An intuitive and user-friendly app will make your learning curve easier, especially if you are new to trading synthetic indices.
Find brokers with cross-platform trading applications. A web app, iOS, and Android application will allow you to trade using your PC or smartphone.
Another factor you should consider is trading tools. Features like advanced chart tools will help you analyze price movements. The availability of customization options can help you further enhance your trading experience.
Indices Range
Brokers will present you with a different selection of synthetic indices. The first step you should take is researching to find which indices offer the best returns. Once you are done with your research, look for synthetic indices brokers offering the instruments you want to trade.
Some synthetic brokers focus solely on volatility indices. Others, like Weltrade, provide a broader range, including range break and jump indices.
Lastly, compare the spreads offered by different brokers. Beware of trading platforms with hidden fees and other exorbitant charges related to withdrawals, account inactivity, or low spreads.
Customer Support
The last thing you want to do is sign up with a trading platform that doesn’t provide 24/7 customer support. Reliable customer service is important, especially if you are new to synthetic trading. Reputable brokers offer 24/7 support via various platforms, including email, phone, and live chat.
Another factor you should consider is the availability of learning resources. These may include webinars, tutorial videos, and demo accounts to help you practice your skills. All of these tools will help you sharpen your skills without incurring losses.
User Reviews and Reputation
Reviews can help you choose between two or three close synthetic indices brokers. You can find quality reviews on the app store regarding the trading application on various devices. Look for brokers with a strong reputation and positive feedback from their clients.
Complaints related to poor customer service, high withdrawal fees, or delayed withdrawals should be automatic red flags.
