The forex market has grown rapidly over the years and this has seen the growth and increase of forex brokers but only a few can meet your trading needs. Here are critical factors to contemplate when choosing a forex broker.
Consider the trading platform of the broker before making any hiring decisions. A good trading platform should be stable and easy to use since this is where most online forex trading happens. 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. A poorly designed trade platform are difficult to navigate and you could easily make mistakes like going long when you meant to go short.
Do some research on the forex broker and make certain that they are trustworthy and reliable in their trade. Ensure that their firm is regulated by the relevant authorities, for instance, if it’s located in the United Stated it should be regulated by the National Futures Association (NFA) and the Commodities Futures Trading Commission (CFTC). This is a sure way of differentiating trustworthy brokers from fraudulent ones. Besides, you will be guaranteed safety and security when carrying out your trading activities.
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. It will be easier for you to get your needs sorted by one competent broker and this will save both your time and effort. Similarly, if they offer more products, it shows that they have multiple clients trading with them.
Your forex broker should have a policy that allows ease of deposits and withdrawals. Look for brokers that will allow you to deposit and withdraw your earnings without much hassle. 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. There should be a live attendant ready to tell you more about the company, leverages and spreads. Besides, you will not be guaranteed of quality services if their customer support is below par.