Investing in the forex market is a great way to grow your income. However, it’s met with a lot of challenges, for starters. Understanding how the market works and finding tips to gain profits take time. For this reason, it’s recommended that you get a mentor to walk with you during the trade.
Besides, the market nowadays is filled with many brokers. Choosing the right one can be a pain in the neck, especially if you are a newbie and unsure of what you are looking for.
This article will continue to discuss the qualities you should look for when choosing the right forex broker.
The first thing you should check before anything else is ensuring that your forex broker has a high level of security. After all, you can’t go handing over all your savings to a platform that only claims it’s legit.
In the modern world, checking for the credibility of the platforms you might be interested in is an easy task. There are regulatory agencies out there whose main task is to separate the trustworthy brokers from the fraudsters.
Before you trust your hard-earned cash with a broker, be sure that they are certified members of the regulatory bodies within your country.
2. Check for Reviews Online
In this digital era, online reviews are essential for choosing the right broker to trade through. Customers leave their honest opinion about their experience after working with a specific broker. Before you settle for a specific legit broker RoboForex team suggests that you check on trusted reviews. A trusted source should give a detailed review from the basic stuff to the technical ones for trading brokers. The reviews should help you conclude if a specific broker is worth your attention based on other people’s experience with them.
3. Consider the Transaction Costs
After you confirm that they are legit and their membership with the bodies checks out, your next move should be to scout the amount each platform cuts as the transaction cost. You should know that you will always be subject to transaction costs regardless of the kind of currency you trade-in.
Every time you enter a trade, you will have to pay for either the spread or a commission. So, it’s wise to go with a legit and most affordable platform available.
4. Is it Easy to Deposit or Withdraw Funds?
An ideal forex broker should make the process of depositing and withdrawal of your earnings hassle-free. Brokers have no right to make it hard to withdraw your fund because the only reason they have your money is to facilitate trading. Therefore, the platform you consider should have a smooth and speedy withdrawal process.
5. Reliable Customer Service
Nothing is annoying as working with a platform that rarely picks their calls or takes forever to reply to messages. An ideal forex broker should be there to listen to your complaints or help when a problem arises.
Forex brokers shouldn’t be helpful only when you are opening an account with them. If you notice poor customer service later, the best solution should seek an alternative trading broker.
6. Trading Platforms
As a trader, you have the right to choose the kind of hardware and applications that you find easy to use. Some traders opt to go with web-based applications, while others stick to desktop software.
The trading platforms available should be reliable to prevent frequent freezing or system crashes that are likely to occur during global events or breaking news. Also, consider the design as essential if you are an aggressive trader who makes frequent trades in long sessions. Always go with platforms that make it easy to place an order or close the trade to manage losses, for example.
7. Currency Pairs Offered
There are many great deals of currencies available for trading. However, only a few get the majority of the attention. The common currency pairs include USD/JPY and USD/CHF, among others. Although the broker may offer many trading pairs, you should only go with one that offers the pairs that interest you as a trader.
8. Execution Time
The broker you go for must be able to fill you at the best possible price for your orders. Under normal market conditions, there is no need for your broker to fail to fill you at, or very close to, the market price you see when clicking the ‘buy’ or ‘sell’ button.
For instance, assuming you have a reliable internet connection, if you click ‘buy’ EUR/USD for 1.4000, you should get filled at that price or within the micro-pips of it. If you are a scalper, especially, the speed at which your orders get filled is very important.
9. Check the Types of Trading Accounts Available
When scouting for a forex broker, it’s important to consider the types of trading accounts offered by each broker. There are several trading accounts and depend on the amount of lots that are traded. They include;
- Micro accounts
A micro account is the smallest of all with 1000 units, while the micro account has 10000 units. The largest of all, the standard account, consists of 100000 units. Fortunately, with some brokers, it’s easier to configure an account based on your needs. If you are just getting started in the game, you may consider starting with an account with a small amount. They are ideal for trying your hand in currency trading.
10. Do they have a Demo Account?
Forex trading requires you to understand the basics to learn how the trade functions. Learning things from others or through blogs or press releases may not work unless you do things practically.
For this reason, most recognized forex brokers offer a demo or trial period to their customers. The demo account is usually filled with fake money, allowing clients to go through the platforms, placing orders as they would do with a real account.
The trial period offers are also the same and may run for a week or even a month, depending on the broker. When finding your broker, you should go for one with a platform that gives you enough time to familiarize yourself before you get into real action.
In the recent past, and in the world where people are looking for ways to boost their income, forex trading has proven to be chasing. There is money there, as long as you play your cards nicely. Succeeding in the game starts with choosing the right broker. Mentioned in this piece are tips on how to find the right broker in the competitive market. Read through the entire article to better understand the selection process and narrow down your search.