The retail forex market is particularly competitive and there are many brokers, all claiming to have the best services available. Having to sift through all these brokers to find the right one for you can be a daunting task. However, if you know what to look for, you can simplify the task and go about finding the broker that will be best for your needs. Here we will look at the most important qualities you should look for in a forex broker.
This is the most important quality and will make or break it in terms of whether to use a specific broker. You will be handing over thousands of dollars to these brokers and you need to know that they are reputable. Fortunately, there are regulatory bodies all over the world that screen these brokers to separate the trustworthy from the shady. In the US, the broker must be a member of the NFA and be registered with the CFTC.
Initial Deposit Requirement
All brokers will have an initial deposit requirement. When you first start out, you will probably want to make a small deposit and may be tempted to find the broker that offers the lowest initial deposit requirement. While this is a legitimate concern, some of the best brokers may have a high initial deposit requirement and so in fact, this consideration should be low on your list.
Transaction costs are a part of the trading process and will be a consideration with every broker. However, make sure that you do not get enticed by low transaction costs at the expense of the reliability of your broker. It is important to find the right balance between security and transaction costs.
Ease of Deposits and Withdrawals
It is important that both the deposit and withdrawal process for funds is smooth and hassle-free. In fact, if it is a hassle to make a deposit, you can be skeptical about how simple it will be to make a withdrawal. A reliable forex broker will make this simple for you, regardless of the reasons you are making a withdrawal.
When trading forex online with a broker, almost all trading activity takes place via the broker’s trading platform. A trading platform that allows a high level of automation and reduces human interference the most, may be the most trustworthy as it will prevent the broker from tampering with any trades. Closely check out the features that are offered via the trading platform, such as financial reviews, charting tools and technical indicators. It is also important that the platform is user-friendly and easy to navigate around. A good trading platform is just as important for beginners as for seasoned traders.
This article presents just the tip of the iceberg when it comes to choosing your broker. The bottom line is that every broker should be trustworthy and reliable and use a trading platform that is both solid and user-friendly, with helpful customer support for times when it’s needed.