Finding a reliable forex broker is the initial step of becoming a successful online trader. There are thousands of online brokers today, and this makes it hard to differentiate between who is legit and who is not. So what should you look at to select the best? There are multiple broker features which prove critical to the trader’s final decision. We have limited the list to the top seven things that you must consider when choosing a fore broker.
- Forex account type
You will have to decide on the type of trading account you will open if you are new to forex trading. There are different types of accounts which depend on the initial amount of cash you deposit. Their names are also based on the number of funds deposited. For instance, we have a mini account, micro account, standard, and the VIP account. The leverage also varies depending on the type of account. Once you decide on the type of account you want, look for a broker who offers that account at your exact requirements specifications.
- Customer service
The forex market remains active for 24 hours per day. You should look for a broker who will be willing to provide their services all those hours without any inconveniences. Unless you choose to be a day trader, your broker should be readily available both day and night. It it’s a brokerage firm; their customer communication channels should be readily available with supportive customer team. You should also look at the speed of transaction offered by the customer services, the politeness and the quality of their services.
- Broker regulation
You can’t choose to work with an individual broker or brokerage firm which has not been accredited. Although the licensing is not a guarantee that you will be successful in the forex market, the accreditation will act as insurance should you have any fraud issues. It is also wise to confirm the location of the company since the legislation requirements for brokerage firms vary from one state to the other. The location is also important since the economic and political situations can affect the operation and the financial stability of your broker.
- The deposit and withdrawal methods
The methods used to deposit and withdraw funds from your accounts form a crucial part of your consideration checklist. You should also look at the specific depositing and withdrawal methods that your broker uses. For instance, most brokers accept debit, credit cards, Skrill (money bookers), bank wire transfers, and PayPal. Confirm if the broker you would like to work with accepts the payment method you intend to use. Be sure to confirm the specific fees that apply to each specific method of transaction, as well as the minimum and maximum funds
- Forex bonuses
Several brokers increase their clients trading capital by providing them with bonuses. Some of them provide up to 50% of their initial cash deposits of the Exchange Traded Funds. The bonus on is usually deposited to your trading account no you can use it to attain a certain volume. Confirm if the brokers offer any bonuses by reading the terms, conditions, and requirements of their bonuses.
All brokers do not charge their clients the same amounts. Some are more costly than others. If your budget is low, look for the cheaper broker but be keen not to land in the hands of the wrong broker when trying to save a few pennies. Besides the costs, they should be transparent and allow you to know what’s happening in the market. A transparent broker will publish their past reviews and statistics on their websites.
The forex market is highly competitive, and this means that you should work alongside a broker to help you make the right investment decisions. Make sure that you observe the discussed considerations while choosing your ideal partner. The brokers play a vital role in the market, and you should, therefore, take time to research on the best.