There’s a huge number of Forex brokers available in the market today, and choosing the best one can seem like an overwhelming task. The process will require lengthy internet searches and a lot of asking for recommendations from other traders.
5 important points when choosing the right Forex broker
Security
Your number one priority is to make sure your funds are safe. A good broker should provide its clients a high level of security. It’s easy for some brokers to claim they offer this though, so how can you be sure?
Fortunately, checking the credibility of a broker is fairly easy these days. There are
regulating bodies all over the world that oversee the operations of Forex brokers. A few of the most recognized regulators include the U.S. National Futures Association (NFA) and Commodity Futures Trading Commission, the UK’s Financial Conduct Authority, and Cyprus Securities & Exchange Commission.
Trading Platform
To start trading in the Forex market, you will need a trading platform as it is your portal to the market. When choosing a broker, carefully check the trading platform it offers. Make sure it’s stable, easy to navigate, and
offers other helpful features and functions.
Transaction Cost
You’re subject to transaction costs for every trade you make. Brokers make money from the difference between the bid and ask price (spread), but there are instances where they charge other transaction fees or commissions. Of course, you will want a broker that offers the most affordable rates. However, sometimes you may have to sacrifice low trading costs for a more reliable broker.
Deposit and Withdrawal
Cashing in funds into your trading account is usually fast and smooth. But withdrawing from it is a different story. Withdrawals can be an issue with fraudulent brokers. They will make random excuses to hold your money into their system. Meanwhile, a credible broker only facilitates trading and has no reason to hold your funds or make it hard for you to withdraw profits. When searching for a broker, make sure there are no complaints about not being able to withdraw.
Customer Support
Customer support is a key aspect that you need to evaluate. A good broker shouldn’t only be kind and helpful during the account opening process. It should also provide top-notch customer support after sales to make your trading experience a better one. Whether it’s a technical or withdrawal issue, the broker must respond in a timely manner.
