What to ask a broker before depositing a cent

[Shadow Trader]

A ten-minute conversation with support can prevent months of regret. Many traders skip it and rely on the website. A few good questions bring useful answers, or revealing evasions.

Ask: Which legal entity will hold the account, and who regulates it? Is the account A-book, B-book or hybrid? Does the broker use last look? What's the maximum order execution time and the typical rejection rate? Are there restrictions on scalping, hedging or automated trading? What are the swap rates and rollover times? How are withdrawals processed, with what fees and timelines? What happens to client funds if the broker fails?

Ask for answers in writing, by email or chat transcript, and save them.

The quality of the response says something too. Clear, specific answers suggest transparency. Vague replies, redirects to marketing pages or pressure to deposit quickly are warnings.

A small test deposit and withdrawal comes next, before any serious capital goes in.

What questions have turned out to be the most revealing, and which answers set off alarm bells?