TMCnet Feature
October 26, 2020

A Quick Guide To Choosing The Right Forex Broker In 2020

Trading in the forex market can be a highly profitable option for individuals willing to grow their investments. But, given the volatility associated with trading, many people feel hesitant to dive into this market. However, it is possible to steer around the lows and enjoy the highs, when you have the right forex broker to guide you.  

But wait!

Don’t just go with any broker who claims to be trustworthy. Make sure to select the right forex broker who can help make informed decisions and is actually reliable.

How, you ask? Well, below are the parameters to look for.

  • Reputation and trustworthiness- As an investor, your ideal motive would be to ensure that your investment is preserved for the longest possible period. Scams lead to issues like access denied to your account, or worse, losing your money, so beware of fakes. Moreover, to decide whether you can trust a particular broker, you must check their industry experience. The ideal broker must possess a license from the local regulatory authority of your country. This will ensure that any arising conflict will be dealt with within legal field. For instance, if you reside in Canada, look for a locally-regulated broker like Friedberg Direct.

To make a quick assessment of the reputation of your broker, check the security standards they offer for your account. Also, go through the reviews about them on the website of brokerage companies.

  • Conditions of trading- Every broker presents a set of conditions that you will have to oblige if you are collaborating with them. So at a first glance, you should check the fees and the spreads you will have to pay. Also, a genuine broker should offer you different types of trading accounts like Mini, intermediate, or VIP, each with their unique benefits.

If the broker is eligible to trade in multiple markets, it is a positive sign as then only you will be able to expand your opportunities.

You might know that Forex is highly dependent on leverage ratios, so a rightful decision would be to analyze the leverage allowance your broker is offering. Although you might be inclined towards brokers who allow you the lowest spreads, you should stick to the ones ensuring execution of orders at your price.

  • Use of trading platforms- The trading platform would be your workplace, so your convenience is extremely important. For starters, check whether the classic platforms like MT4 and MT5 are included. However, some brokers allow trading in proprietary web terminals that offer access from anywhere without even downloading any application. 

If you are tech-savvy, you can check out social trading platforms, which allow you to do all the necessary activities via your smartphone.

  • Resources available for traders- Not only newbies but expert traders also require some additional resources to trade in certain markets, so this is a prerequisite.

Also, confirm whether you can attend webinars to learn new trading techniques, or clear your doubts. Lastly, make sure there is a 24x7 support system to answer your queries and resolve problems at the soonest.

If a forex broker manages to tick all these boxes, you can proceed to seal the deal with them. But always keep your eyes open and let your instincts guide you, to smell out fraudsters!

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