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 are critical factors to contemplate when choosing a forex broker.
One of the most essential factors to keep in mind when choosing a forex broker is their trading platform. This is the portal of the investor to the market; hence, it should be easy to use and stable. A good trading platform should offer a news feed, an easy-to-use technical tools and information to guide you in your trade. With a user-friendly platform, it will be easy for to access the buy, sell and panic button that closes all operations. This will help you avoid costly mistakes that you are bound to make when the platform is poorly designed.
Do some research on the forex broker and make certain that they are trustworthy and reliable in their trade. Regulatory bodies like National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) licenses brokers in the United States. 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. You will have peace of mind because you will be guaranteed of your safety and security.
Look for a broker that has more trading products besides the Forex so that you other needs can be met. Some of these products include; options, futures, CDFs, commodities and others. 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. Similarly, if they offer more products, it shows that they have multiple clients trading with them.
Check their withdrawal and deposit policy and ensure that it is flexible and meets your requirements. Look for brokers that will allow you to deposit and withdraw your earnings without much hassle. 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. However, some brokers do not charge commission but charge wider spreads and this makes it hard to earn profit.
With forex trade occurring 24/7, it is important for your broker to have a reliable customer support in place. You should be able to speak to a live attendant who will answer your questions regarding the company, its regulations, leverage and spreads. Do not go for a broker with poor customer support as their services are likely to be substandard.