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. The following are tips to help you choose the right online forex broker.
Consider the trading platform of the broker before making any hiring decisions. This is the portal of the investor to the market; hence, it should be easy to use and stable. 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). Brokers that have been regulated and registered by these bodies are trustworthy and legit. 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 brokers will provide you with other trading products like options, stock, commodities, futures and CDFs. Hence, you will save time and money looking for another able broker to meet your other trading needs. Similarly, if they offer more products, it shows that they have multiple clients trading with them.
Deposit and withdrawal policies is another crucial aspect to check when selecting you forex broker. Any good forex broker will let you make deposits and withdraw your profits in a smooth, fast and hassle-free process. 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.
Do a comparison of the transaction cost of various brokers which may come in terms of commission as well as spreads and find the rates that are within your budget. 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.
Customer support is another consideration since you want a broker who is available when you need them. 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.