If you’re in the market for a forex broker, it is most likely because you’ve finished your training and are ready to take your first plunge into the market. Finding a reliable broker that you can work well with is your next step. Or maybe you’re an experienced trader and either outgrew your broker or you are just checking who else is out there. Either way, the same rules and guidelines apply. You’ll want to do your due diligence and find the broker that can either get you started or one who can grow with you professionally.
Along with a growing interest and expanding popularity in trading foreign currencies, the number and type of brokers have grown as well. But as competitive as the forex market is, it’s vital that you do the research necessary before committing. Because in the long run, you will have more time to concentrate on developing your own forex styles and strategies if you have a broker you trust.
Proof of Regulation
Before you turn money over to anyone, confirm that your broker is regulated and meets the legal requirements for the country of residence. But be clear that the country your broker is working in is one of those that enforce trading regulations. You don’t want to be left high and dry by a broker who can bypass the law with impunity. To be safe, choose brokers who are living in stable countries that provide strong legal protection.
Transaction Fees
To choose the most appropriate broker for your trades, consider what type of spreads you’ll be working with. Since you will need to pay for each trade you enter, you want to go with the least expensive. Whether you’re paying for spreads or a commission will help you determine the most cost-effective balance between the transaction costs and security.
Trading Platforms
Most of your trading will be triggered through your broker’s own trading platform, so take time to evaluate. Finding a user-friendly platform that is secure and stable is an important part of choosing the broker you feel comfortable with. Make sure that the trading platform gives you access to all the information you need as well as charting and technical tools that are simple to use. A nice plus is a trading platform that also offers a free news feed, since you’ll be coordinating your trades with up-to-the-minute news flashes.
Reliable Customer Service
Once you’ve decided on a broker and begin getting some experience, you’ll come to rely on how well customer service answers your questions, offers adequate support and deals with problems. Even if you go with a broker that has the best trading platform for the lowest cost, it won’t be a successful relationship if customer service doesn’t live up to your expectations. Be wary of brokers that are overly friendly to sign you up, but then disappear when you need help.
However you reach your decision, the time you spend researching brokers will be hours well-spent.
