The Forex exchange is very competitive and finding the best broker for you is a task well worth your time. If you are new to Forex trading, then it’s crucial that you take into consideration these next few tips to avoid making any costly mistakes. In order to trade on the currency exchange market, you need a broker and that’s exactly what we’re going to help you with.
So without further ado, let’s see how to choose a Forex broker.
Contents
1. Security
The first characteristic that a good Forex broker must have is a high level of security, after all, you will be giving up to thousands of dollars to people you have no idea who they are or how legit they are.
Fortunately for you, there is a way to check how legit a broker is by visiting regulatory bodies in each major trading country.
If your broker is legit, then you can find him on eighter one of these regulatory bodies list such as:
- National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) – United States
- Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) – United Kingdom
- Australian Securities and Investment Commission (ASIC) – Australia
- Swiss Federal Banking Commission (SFBC) – Switzerland
- Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN) – Germany
- Investment Information Regulatory Organization of Canada (IIROC) – Canada
Source: Admiral Markets
Before you even think of giving a broker your money, make sure that the trading platform is certified with one of these regulatory bodies. To learn more about forex broker ratings, make sure to visit this website.
2. Transaction Costs
No matter in which currency you’re trading, do understand that there are transaction costs involved. For every trade you enter, you will have to pay eighter a spread or a commission, so make sure you are looking for the most affordable and cheapest rates of trades.
Sometimes, finding the best broker will cost you more, but do understand that it’s better to be safe and pay higher transaction costs, then the opposite way.
3. Deposits and Withdrawals
The best brokers will not make it a problem for you to deposit or withdraw money or earnings. If your broker is legit, then it is in his best interest to make it easier for you to deposit money or withdrawal earnings. A good Forex broker will make sure that the withdrawal process of your earnings is fast and smooth.
Source: The Balance
4. User Experience and User Interface
Since online Forex trading happens on the broker’s online platform, the platform in question must be user-friendly and stable for all users. Whenever you have your eyes set on a specific trading platform, make sure to check it out first and see how the platform looks. If the platform offers stuff like free news, easy to use charting tools, and has all the necessary information for you to start trading properly, then the platform is most definitely the right pick for you.
5. Customer Service
It’s crucial that you choose a broker that you can easily get in contact if things go south. The level of customer service should be on par as their performance on executing trades, user interface, and level of security.
Source: Admiral Markets
To find the best Forex broker for all of your trading needs, it must have all of the before mentioned features to make the trading easy, safe, and convenient.
