8 Things To Consider When Choosing A Forex Broker
1. Safety and Regulation
The first and most important factor when choosing a good broker is to feel secure. Feeling secure when trading a broker is an important aspect to a trader, and should be validated before opening a trading account. The broker must be regulated by a bestspoke regulator and be part of a compensation fund. For example, NSBroker and Avatrade are regulated by a number of financial regulators. Their license numbers can be confirmed by their website or the regulators website.
2. Broker Trading and non Trading Fees
The second most important factor is any fees that might occur during trading or when handling your money in and out of your trading account. It is important to check what type of spread a broker offers, fixed or floating, as well as to compare the amount of the spread with that of several brokers. Also, always check if there are any commission fees related to your trading activity, or if the broker requires a deposit or withdrawal fee.
3. Account Opening Process
The third factor would be, to always make sure that you can easily open a trading account with the desired features in mind. In today’s fast-paced world speed and time are of the essence and best deal with a broker that is ready to accommodate your needs.
4. Deposit and Withdrawal Methods
After verifying a brokers’ origin and regulation, the next step would be to validate the deposit and withdrawal methods available for your country of residence.
A good broker needs to demonstrate that he is capable of receiving, processing, and administrating funds on your behalf. It is also important to check what is the average transaction process time needed for your desired method of deposit and withdrawal.
5. Trading Platforms and Execution
A good forex trading platform, allows great automation, reduces human interference to the lowest level possible, and ensures that the broker doesn’t tamper with your trades or misquote currency prices to you.
You also need a broker that can offer the latest trading tools and analysis in order to make informed decisions and make a profit. The most well-known trading platforms currently used out there are the Metatrader 4, Metatrader 5 and cTrader.
6. Financial Instruments and Products
Today most top forex brokers offer the opportunity to trade all currency pairs as well as commodities, indices, stocks, metals, and cryptocurrencies. Brokers like OctaFX, Etoro, and GlobeX360 will offer portfolio management services or copy trading, which are the most simple form of automated trading.
Brokers like IQ Option also allow their clients to still trade binary options. It is important to make sure that the broker of your choice is able to offer a variety of instruments so that you don’t miss any opportunity that might present itself due to volatility in the markets.
7. Educational Offering
It is also important to check if the broker of your choice supports any educational materials. Trading is always changing and a good trader always needs to be educated and learning, novice or professional.
The most reliable brokers, like XTB, will offer webinars, local seminars, ebooks and a library of materials for any type of trader.
8. Customer Support
The final and most important factor is customer support. You need to make sure that a broker is accessible via all the modern means of communication and can support you 24/5 in case an issue occurs.
With all these factors in mind, you are ready to choose a broker and start trading.
Read more about our methodology and how we evaluate and create our broker reviews here.
6 Reasons to Choose Forex Trading
There is a number of reasons why someone should consider forextrading over trading stocks or any other form of trading.
To begin with, the forex market is considered the world’s largest liquid market to date, in terms of daily trading volume and turnover.
Forex is highly accessible given that it’s open 24/5 , and investors can make use of far more leverage than they could by trading stocks.
1. The Market Never Sleeps
The forex market is available to retail traders 24 hours a day, excluding weekends. As there are always traders who are looking to buy or sell the market has a significant high level of liquidity. High liquidity corresponds to lower trading costs, otherwise known as spreads.
2. High Leverge
Day traders and investors usually prefer forex trading because they get access to high leverage. Leverage is like a loan from the broker and allows traders to potentially enjoy greater returns. However, leverage is a double edged sword and it also means traders they might experience greater lossess too. Please advise a qualified financial professional before using high leverage.
3. Automated Trading
You don’t need to spend extended periods of time in front of your PC studying diagrams and following all the price movements. With automatic indicators and signals you will be advised promptly of any significant events or trend reversals. Auto trading will enable you to carry out many more trades in a small amount of time, and takes the emotion out of your trading decisions.
4. Training For Beginners
Some Forex brokers provides demo-accounts, training courses, video tutorials and charts so that you can practice your trading skills and won’t have the risk of losing any money.
5. You Always Stand A Chance To Earn
Stock markets can crash yet when one currency is depreciating, the other will pick up worth and you can earn on that as well.
6. Low Entry Point
As forex trading allows the use of leverage, investors can start trading the market with very small amounts. This makes the market accessible to all types of investors.
WHAT IS A FOREX BROKER?
Forex brokers are firms that furnish dealers with access to a stage that permits them to purchase and sell foreign currencies.
WHAT IS FOREX REGULATION?
Fx brokers with more than one regulator should be considered above brokers with just one. One of the most important things to consider before choosing a forex broker, is the brokers regulation.
HOW MANY FOREX ACCOUNT TYPES ARE THERE?
Various brokers offer a large number of account types, designed for the many types of traders and their trading styles.
WHAT IS A SPREAD?
A spread is the difference between the buy and sell price. This is how most forex brokers make money when a client trades. The spreads should be considered one of the most important elements for forex traders
WHICH FOREX TRADING PLATFORMS ARE GOOD?
A good forex trading platform, allows great automation, reduces human interference to the lowest level possible, and ensures that the broker doesn’t temper with your trade or misquote currency prices to you. The most well known trading platforms currently used out there are the Metatrader 4 and Metatrader 5.
IS FOREX A GOOD INVESTMENT?
Forex is not considered a pure investment but it does provides a good opportunity to make money.
WHAT IS CONSIDERED GOOD CUSTOMER SUPPORT?
An efficient Forex broker will support live chat, which offers immediate contact with an online representative, both on mobile and desktop devices.
IS FOREX TRADING SAFE?
In general, Forex trading is safe however it does depend on your trading skills. Starting out as a beginner and opening a real account without knowing how to trade could be really risky. Many Forex Brokers do offer demo accounts which you can use to learn from.
IS FOREX DIFFICULT TO LEARN?
Depending on what your aim is. If you’re aim is to make money fast and not put much effort and time in then you have the completely wrong mindset. You need to be always willing to learn more.
IF FOREX TRADING SAFE?
Feeling secure when trading a broker is the important aspect to a trader, and should be validated before opening a trading account. Most forex brokers are regulated and licensed by international or local regulatory authorities.