Forex broker is not just a middle agent between you and the market. It is your business partner and advisor which has a core role in your success. The choice of a broker is your primary duty when you are starting on the forex market. All new traders are asking themselves how to select a forex broker. We are here to give you advice that will take off the burden of your shoulder, at least at the beginning of your forex trading career.
Table of Contents
1. Transparency
All the data regarding brokers’ location and contact details must be clearly displayed on their websites and platforms. Otherwise, be sure you stumbled upon a forex scammer.
2. Read brokers reviews
Other trader’s experience will help you not to stumble into the dark. They can give you the right direction and objective perspective on the forex trading platforms. Also, many YouTubers with forex experience are eager to share their experience with the public.
3. Trading tools
Serious brokers will offer you top-notch tools to follow market trends, analyze them through charts, and streamline your strategy accordingly. All the tools have to match your operating systems, whether using Windows, Mac, or Linux. User Friendliness of the platform goes hand in hand with tools. The platform must be reliable and fast. Your profit may sometimes depend on the execution speed, so there mustn’t be lagging in system functionalities. Also, accessing your trades by using a mobile phone is mandatory.
4. Security of Forex broker
You trust only those brokers who offer you strict security. When you are about to select forex broker, ask if they have two-factor verification and even more IP address access limitation. That is the security shield every reliable forex brokers must-have.
5. Costs and fees
While checking forex brokers’ reviews, compare their fees, such as rollover fees, spreads, minimum margins, account inactivity fees, and transaction costs. When getting in touch with a broker, ask for detailed explanations of their fees and commission policies.
6. Offering of investments
Nowadays, you will not find only Forex centered platforms. It’s more probable they offer a variety of investment opportunities. If you are a more long position trader, this is crucial for you.
Today, no broker is exclusively dedicated to Forex. The wider choice, the better for traders, especially for long position trading style. Some brokers are specialized in CFD trade. CFD may include taking positions on shares or indexes and exchange trading funds and commodities or government bonds. The more choices is a win-win for both sides, the better for you and your broker.
7. Customer service
Actually, maybe this is the first thing to look for. If something goes downwards, customer support must be immediately ready and available to assist you. In the Forex market, some things must be sorted in a matter of minutes. Or suppose that you have issues with using some software, and you absolutely need specific data or info. That’s why you need a 24/7 available competent person in your native language to help you to sort out the problem.
8. Demo account and education
You will certainly need to practice a lot for a start, and the best way to do it is with a demo account. Good brokers will include this in their service since it’s in their best interest to deal with educated traders and people who know how to manage and increase their capital. The broker must enable you the training to be in a position to explain to you everything related to your trading positions.
9. Check regulations
Only regulated, legal forex brokers can be secure and reliable. Therefore, before going for some broker, check if it’s listed on the websites of regulatory bodies and agencies such as Futures Commission Merchant, which cover the United States. Every country has its own agency, which controls if forex brokers are operating without breaking the rules.
Final thoughts
There is a large competition on the market when it comes to forex brokers. Most of them are transparent, regulated, offering excellent support and learning assistance. Still, you must be aware of forex frauds and scammers that wait on every corner. It’s because Forex is a lucrative niche, and many want to be a part of it.
These scammers will find you through scam emails, on social media platforms, or you can be lured by their attractive ads. All of them offer high overnight returns, magical formulas, and “accurate” forex signals. Beware, their only goal is to take advantage of your lack of information and take away all your money.
In an enormous financial market such as Forex there are so many opportunities. Also, many choices may lead you to be halfhearted and confused. The only way to avoid it is to read forex brokers reviews and find the broker that meets as many above mentioned criteria as possible.
