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. Here is how to find a competent forex broker.
One of the most essential factors to keep in mind when choosing a forex broker is their trading platform. A good trading platform should be stable and easy to use since this is where most online forex trading happens. Therefore, before you choose a broker, see what their trading platform has to offer including information to help you trade properly, technical and fundamental analysis tools and it should be attractive. It should be designed such that the buy, sell and open buttons are clear. If it is poorly designed, you are likely to make mistakes which can be costly.
Do some research on the forex broker and make certain that they are trustworthy and reliable in their trade. 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 the trading products to look out for include; stocks, futures, CDFs, options and commodities. Hence, you will save time and money looking for another able broker to meet your other trading needs. Besides, a broker that offers variety of products shows that they have a large client base trading with them.
Deposit and withdrawal policies is another crucial aspect to check when selecting you forex broker. A good broke will ensure that the withdrawal process is fast and easy so you can get the profits you have earned. Apart from ease of withdrawal and deposit, the methods of payment should also be varied including PayPal and credit card.
Find out about the brokers transaction cost before you make any decision as it may be charged through commissions and spreads. On the other hand, do not settle for brokers who make money out of wider spreads and not commissions as this will be hard to make profits.
With forex trade occurring 24/7, it is important for your broker to have a reliable customer support in place. You should be able to speak to a live attendant who will answer your questions regarding the company, its regulations, leverage and spreads. Besides, if they have technical support issues, it is an indication that their performance when it comes to executing trade is poor.