Forex is the largest financial market in the world where every day around 3 trillion $(USD) changes hand on a daily basis. Since there is no any predefined marketplace in this marketplace, hence one needs to take the help of a broker if they wish to start their own trading career. In the recent times, a large number of brokers mushroom in the market so as to provide the best assistance to the broker. In this blog, we will throw light in selecting the ideal Forex broker for your trading and how to give a jump start to your overall trading career.
6 Factors to Consider before Opting for Forex Broker
With so many brokers out there, how would a newbie trader select the best one? The chances are that they would not be able to start off things but you need not have to worry.
We are here to help you out and with our dedicated approach, you will be able to find the most suitable brokers as per your needs. Before you start reviewing the broker, there are few factors you need to pay attention and the same are discussed under the following headings:
- Make sure that the broker is registered with some good and authentic authorities like for instance CFTC, CySec or NFC. In the event, if the broker is non-US based, then make sure it is regulated by “Financial Service Authority”. In the event, if the broker is not a registered one, there are chances that it can be an illegitimate one and you should not trust them at any costs.
- Is the broker able to provide fixed or non-fixed spreads? Is it a dealing or not dealing desk broker and what are the different kinds of spread offered by the broker? These are very crucial questions because it can have a big impact on your overall trade business. Make sure you get answers to the above questions before you finally move on.
- Leverage is a very impact factor governing the overall quality of the broker. Never think that any broker who is offering a very large leverage is a good one and you should opt for it. Sometimes less is more and you need to realize it.
- Since you are not ready to start your trading career with real money. So make sure that the broker is able to provide a Forex demo account where you are able to practice well and sharpen your overall trading techniques.
- Is the broker able to debit or credit the rolled over interest on a daily basis? There are certain brokers who are able to provide either the above features or neither of them. It is a very important feature and it can impact your trading account overnight.
- Select a broker who is able to provide premium services like market commentary, news feeds, and other charting features. These features can have a strong impact on your trading career and your broker should be able to provide the aforementioned services.
Selecting a Forex Broker – Forex Trading Strategy Q&A
Customer Service: An Important Criterion for Consideration
At the end of the day what really matters is the treatment meted out of the hands of the broker concerned. If you are not happy and comfortable with the broker, there is no way you would be able to prosper in the Forex industry. The broker should have a dedicated customer service available with skilled customer care executives who are able to answer queries whenever so asked. There is no point in having a broker who does not pay attention to the problems of the customer concerned, let alone of solving them. When you are selecting a broker, make sure it is able to provide additional services like webinars, e-Books or pdf documents on successful trading etc. that can help you in boosting your knowledge about the financial industry.
Asking the Right Questions Before Trading with a Forex Broker
Before you start trading with your choice of broker, it is important that you must ask the following questions mentioned below:
- Are you a regulated broker and in which countries?
- What are the different currency pairs and other assets offered by you?
- Is the deposit money segregated from the operational capital?
- Are you an ECN Forex broker or a dealing desk broker?
- What are the alternate delivery channels to contact the customer executives?
- What are the different platforms available? Is mobile trading available?
- What is the payment procedure followed and is it free of charges?
Once you have the answer to the above questions, you will be in a better position to assess the overall credibility of the broker. It will also give you a bird’s eye view of the reputation of the Forex broker and rule out any hassles down the road.
Read the Reviews of the Broker to Get a Better Insight
You are encouraged to get online and read the broker reviews over there. Go through the testimonials and other stories of the customers/clients who did trading with the broker concerned and see what they have to say. You are likely to come across a mixed bag of positive and negative reviews and in order to rule out any confusions, you should stick to the following basics mentioned below:
- If it is an old broker with many years of service in the market, then you should know that it is a nice broker that has a tonne of knowledge as to how the market operates.
- If it is a regulated broker, it shows its overall seriousness in providing the best services to you and will leave no stone unturned in aligning itself to your trade requirements.
- If the broker is able to provide more than one product, it means that the broker has a very large business which means diversity and flexibility to your overall trading career.
Finding the Ideal Broker for your Forex Trading
Once you have decided the ideal conditions that are important for you, you can compare the various brokers in our database. There is a dedicated page on Forex brokers where you can find all the legitimate and best-rated brokers available in the financial market. You can compare the broker on the basis of payouts, deposit money etc and select the best out for yourself and start trading.
Finding the ideal broker for Forex trading is both a matter of luck and hard work so labored by the trader concerned. If you have found a good broker, you will start to see its effect on your trade profits. A good broker will create a lot of confidence in you and this, in turn, will help you formulate better trading strategies that can help you in the longer format of the game. So try to do a little bit of research at your end while selecting the broker because it will surely improve your overall odds of surviving and excelling in the financial market.
I am living in London. I am an e-entrepreneur. I have been working in the financial trading industry as a professional since 2003. I am a fan of Chelsea team. I am married. I like cycling.