Looking to get a reputable Forex Broker? It can be a hassle, especially if it’s your first time in the market. Luckily, there is lots of information available online. You can learn a lot, including forex trading tips, how to choose a broker and more. Besides, there is more information when looking for a reputable broker. Some articles choose different brokers and review their pros and cons. With such information, you can consider the broker that suits your needs best.
Investors living in the United States will have limited choices in choosing Forex Brokers. That’s because, in the country, limited number of Forex Brokers are those that are licensed.
However, if you want to choose a Forex Broker, there are essential things to pay attention to. In the article, we have listed the essential features of a reputable Forex Broker, and they include:
1. Security
The essential factor to consider is the high-level security a Forex Broker provides you. That’s because you can’t spend hundreds of dollars on a platform claiming to offer legit services. It has to prove to be legit and thus aim to find a regulated broker.
Regulatory agencies regulate Forex Brokers. It’s not hard to differentiate a trustworthy Forex Broker from a fraudulent. Each country has a body responsible for regulating Forex Brokers. Consider checking your country and know the right regulatory body.
2. Transaction Costs
The currency you use is not a major concern. However, every time you want to trade, you will be charged a transaction cost. Different Forex Brokers charge a different amount.
So, every single trade you will make, you have to pay: the spread or the commission. If you want to have a great time experiencing trading benefits, consider one with the cheapest rates as its most affordable.
Unfortunately, there is a time you might opt to sacrifice the low transaction cost and get a reliable Forex Broker. But, the best thing is whether you require tight spreads and you can review available options. All you need is to balance between the low cost of a transaction with security.
3. Deposit and Withdrawal
A good Forex Broker is one that allows you to deposit and withdraw your profits hassle free. There is no reason to make it hard for you. However, they might hold for only one reason; facilitating their trading.
The broker can hold money aiming to make your trading hassle-free. However, there is no reason to have a hard time trying to get the money you earned for the profit. Before picking a broker, ensure the broker provides a speedy and smooth withdrawal process.
4. Trading Platform
When you want to trade forex, most of the activity will take place at the broker's trading platform. Therefore, the Forex Broker you choose must have a user friendly and stable trading platform.
Before you choose a broker, consider what the trading platform of the broker offers you. Whether the trading platform provides users with free news feeds. Also, consider whether the charting tools are easy to use. The best Forex Broker should provide you with all the essential information; that enables you to trade properly.
5. Execution
Execution is a great feature to look at before you consider the Forex Broker. That’s because it’s a must for the broker to fill you with the best price for your orders. When the market is in normal condition – no surprise events, no important news releases or at normal liquidity – there is no reason for the broker not to fill you to the market price you see.
If you have a reliable internet connection and then click “buy” EUR/USD and it goes for 1.3000, your Forex Broker should fill you with that price. It’s essential to consider the speed your orders will be filled, and most likely when you’re a scalper. If there is a difference in a few pips, it becomes hard for you to win the trade.
6. Customer Service
Customer services are essential. Therefore a great Forex Broker should provide you with excellent customer services. Perfect customer service is one you can contact easily the moment you experience any problem.
If you have any problem with your account or technical issues, customer service's competence is as important as the trade's execution. When you meet incompetent Forex Brokers, they are only helpful during the account opening process. But later, they have poor after-sales services. Avoid such types of brokers.
The Bottom Line
The above list shows the elements to look out for before you choose a broker. No broker is perfect to have all the recommended characteristics. However, by looking at the features, you will be sure to get the best Forex Broker. Many traders make the mistake of not choosing the right brokers. So, they end up scammed by individuals or bogus companies wanting to make quick money. Please don’t make a mistake and be one of them.
