A Quick Guide for Selecting a Forex Broker
With forex market being so competitive, choosing the right forex broker for your trading needs can be devastating. The following are tips to help you choose the right online forex broker.
Consider the trading platform of the broker before making any hiring decisions. This is where most trading activity occurs and it’s for this reason that it should be stable and user-friendly. Also, make sure that it has various technical analysis tools, news feed and offers you with relevant information to help you trade well. Look for a visually pleasing and well-designed platform with clear buy, sell and open buttons to enable you enter and exit the trades with ease. This will help you avoid costly mistakes that you are bound to make when the platform is poorly designed.
Check the credibility and reliability of the broker before you decide to work with them. 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 can also be assured that they have high level of security so you do not lose your money.
Opt for brokers that are willing to provide you with a variety of trading products other than forex. 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. Additionally, a variety of trading products shows that the business is large and they cater for the needs of many clients.
Your forex broker should have a policy that allows ease of deposits and withdrawals. Any good forex broker will let you make deposits and withdraw your profits in a smooth, fast and hassle-free process. Apart from ease of withdrawal and deposit, the methods of payment should also be varied including PayPal and credit card.
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.
Customer support is another consideration since you want a broker who is available when you need them. It is a good sign if you are able to speak to a live attendant so you can inquire about the company, the spreads, leverages and regulations. Do not go for a broker with poor customer support as their services are likely to be substandard.