A Quick Guide for Selecting a Forex Broker
With forex market being so competitive, choosing the right forex broker for your trading needs can be devastating. Here is how to find a competent forex broker.
Consider the trading platform of the broker before making any hiring decisions. This is where most trading activity occurs and it’s for this reason that it should be stable and user-friendly. 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. This will help you avoid costly mistakes that you are bound to make when the platform is poorly designed.
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). When the broker is a member of any recognized regulatory authorities, you can be assured that they are trustworthy and they will not rip-off your money. Besides, you will be guaranteed safety and security when carrying out your trading activities.
Opt for brokers that are willing to provide you with a variety of trading products other than forex. Some of the trading products to look out for include; stocks, futures, CDFs, options and commodities. Hence, you will save time and money looking for another able broker to meet your other trading 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, ensure that they have convenient methods of payment such as PayPal, credit card, bank check, and wire transfer.
When you enter a trade, the brokers make money through spreads and commissions; you therefore need to compare the transaction cost of different brokers to find the most affordable one. On the other hand, do not settle for brokers who make money out of wider spreads and not commissions as this will be hard to make profits.
Make sure that the broker offers 24/7 customer support mainly because forex trading takes place all the time. It is a good sign if you are able to speak to a live attendant so you can inquire about the company, the spreads, leverages and regulations. Besides, you will not be guaranteed of quality services if their customer support is below par.