The Ultimate Guide to Strategies
A Quick Guide for Selecting a Forex Broker
The forex market has grown rapidly over the years and this has seen the growth and increase of forex brokers but only a few can meet your trading needs. Here is how to find a competent forex broker.
One of the most essential factors to keep in mind when choosing a forex broker is their trading platform. A good trading platform should be stable and easy to use since this is where most online forex trading happens. Therefore, before you choose a broker, see what their trading platform has to offer including information to help you trade properly, technical and fundamental analysis tools and it should be attractive. Look for a visually pleasing and well-designed platform with clear buy, sell and open buttons to enable you enter and exit the trades with ease. If it is poorly designed, you are likely to make mistakes which can be costly.
Check the credibility and reliability of the broker before you decide to work with them. Ensure that their firm is regulated by the relevant authorities, for instance, if it’s located in the United Stated it should be regulated by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). This is a sure way of differentiating trustworthy brokers from fraudulent ones. Besides, you will be guaranteed safety and security when carrying out your trading activities.
Look for a broker that has more trading products besides the Forex so that you other needs can be met. Some of the trading products to look out for include; stocks, futures, CDFs, options and commodities. This will enable you to choose products that meet your needs and you won’t need to look for another broker to fulfil your other needs. Besides, a broker that offers variety of products shows that they have a large client base trading with them.
Deposit and withdrawal policies is another crucial aspect to check when selecting you forex broker. A good broke will ensure that the withdrawal process is fast and easy so you can get the profits you have earned. Also, check their methods of payment as some brokers allow deposits through credit card, wire transfer, pay and bank check and withdrawals through wire transfer or check.
Find out about the brokers transaction cost before you make any decision as it may be charged through commissions and spreads. However, you need to be vigilant of brokers who do not charge any commission but they make money through wider spreads making it difficult for you to earn profit.
With forex trade occurring 24/7, it is important for your broker to have a reliable customer support in place. There should be a live attendant ready to tell you more about the company, leverages and spreads. Besides, if they have technical support issues, it is an indication that their performance when it comes to executing trade is poor.