Are you pondering investing in the Forex market but you are not sure of where to start? The first thing to pay attention to is certainly your choice of the good forex broker.
Within the next lines, we have compiled all the necessary things you need to know to recognize and choose the right broker.
What is a forex broker?
The fore broker stands for an in-between that connects you as a trader and financial market. It provides the service of buying and selling the currencies at your choice, making profits by taking the commissions on transactions. In other words, it’s an intermediary between the buyers and seller, and should be your best partner in your forex trading career. Brokers may be a brokerage company or the individual who operates independently. Generally, they don’t get commissions for providing their service but on transactions whenever they execute an order.
Only a regulated broker is a good broker
There is no further discussion on this point. To be sure you entrust your money to the right company or a person you have to check if it operates within the legal frames. The reliable brokerage platform is only the one that is screened and approved by the financial regulatory body.
Fees and commissions
Before going for a forex broker, you need to check their fees and commissions and compare them with other brokers on the market. This step is important to see if the fees comply with your investment plan. The lower commissions are better, but be careful since you need to find a balance between this factor and the quality of all the other services the broker provides you.
Easy money withdrawal and funding procedures
Before entrusting your money to any broker, you need to be sure about the process of funding and withdrawal. It may largely differ from one broker to another. Sometimes, it can be really frustrating to close your account if the broker requires filling a lot of forms or asks you to take some surveys or talk to its representatives to talk you against the account closer. Or it may take as long as a week or more to withdraw your money from the account. Be sure to read carefully in advance the terms and conditions and to ask the right question before start trading to shield you from unpleasant surprises.
Agile customer support
The importance of efficient customer support both for the newbies and seasoned traders, just can’t be stressed enough. A reputable and experienced forex broker will never let you down in case some problem arises with your trading account, withdrawal process or depositing your money. The customer support has to be able to answer all your queries via phone, e-mail, via chatting bot service and resolve the issues in your native language. As the Forex enables trading all round the clock, the support has to be ready at any moment to assist you in case you have a problem.
The right broker offers trading education
The more knowledgeable you are, the better outcome of your trade will be, and the broker gets more profits on commissions. The trading education must include a good introduction into the trading platform and its features. It must highlight the currency pairs that at a certain moment, bring the most short term gains and also show you the types of the orders and how to implement them into your trading plan.
Some brokers offer social trading. Social trading is a type of trading hub where you can interact with other traders and get the opinion on market trends. The Forex broker has in its best interest to provide you with the trading knowledge, the right information and to offer you trading on a demo account so you can put your knowledge in practice before investing real money.
Reliable and secured trading platform
The currency pairs’ prices are determined through the interbank trading systems. Forex brokers take their insight from these systems, and for that, they need reliable and secured trading software.
Given the fact that the outcome of a trade can depend on quick reactions to the market trends, the responsive platform without lags is of the utmost importance.
There are different types of platforms such as stand-alone platforms, web-based and mobile trading apps. The mobile apps can provide the best trading experience, but it’s advisable to resort to them in times when you are away from the full-featured trading desk.