The Way of Choosing the Right Forex Broker
The time when you had to call your broker to place an order has gone. With online trading, traders and investors have received a great opportunity to manage every aspect of their trading right from the online broker's platform. Now, the question is how to choose a Forex broker from all the variety of options? What aspects should you focus on?
Main Parameters for Choosing a Forex Broker
Remember that there is no such thing as "the best Forex broker". Your final choice will be based on your individual preferences. By knowing the kind of trading experience you expect, you can decide on the broker who is right for you. To lighten the burden of choosing the broker, pay attention to the following parameters:
иаAuthoritative standards/ licenses
You should focus on the brokers authorized and regulated by leading regulation authorities such as CFTC, NFA, or FSA. Why is it so? A licensed broker provides you with high reliability and better protection. FxOpen and FxPro are excellent examples of fully regulated online brokers.
иаFast and easy navigation
Online Forex trading platforms need to be simple, intuitive, and easy to trade. This becomes possible with a good user Interface. Whether you are a beginner or a professional, you will feel comfortable with processing your trading operations. Plus500 and Markets.com offer the best Forex trading platforms in the industry for beginners.
иаEfficient customer support
The role of customer service in online brokerage is often underestimated. In fact, efficient support is a must because you most likely need to use it. Ideally, you should get in touch with brokers' customer service representatives before making your first deposit. You can send them a few questions via email or ask those questions directly over the phone before signing up. The main point is to get a feeling for the speed of service as well as its quality. Saxo Bank, Admiral Markets, and easyMarkets are all known for fast, high-quality support.
Different Forex brokers provide different leverages. The higher the leverage is, the more profit it can guarantee you. At the same time, high leverage comes along with a high risk. That's why you cannot hope for the best level of leverage because it depends on your trading strategy. There are some brokers that provide up to x100, x200, and even more in separate cases.
иаFirst deposit bonus
Each broker wants to be attractive for potential customers by offering high capital bonuses on your first deposit. In this case, you get extra cash to trade with. There are several brokers providing great starting rewards. For instance, Pax Forex, FBS, HotForex, and MultiBank Group offer up to 100%.
иаDeposits and withdrawals
You need to get familiar with the broker policy regarding deposits and withdrawals. The main attention needs to be paid to the waiting time for financial operations. But you also should look through all other written policies.
иаReasonable trading costs
Brokers earn cash through the fees traders' payout. A considerable source of revenue and operating expenses will be the spread as the price difference between the bid and ask prices. To find out the broker's approach to spreads, you should ask some questions. Are spreads fixed or variable? What is the average spread for each of the currency pairs you are about to trade? What are the estimated spreads within high volatility?
иаAvailability of demo account
Buying something without checking it first is the worst idea you can have in online brokerage. Before starting a "serious" game, you should get some practice through a practice account with the broker you want to trade with. Now, almost all brokers offer practice accounts (FxPro, Admiral Markets, and FBS), which allow you to test the broker before investing any money. It allows you to get some skills with virtual money before you decide to start trading real money. Also, you will be able to test the broker's trading platform.
Extra Parameters for Choosing a Forex Broker
Some Forex brokers provide rock-bottom account minimums. Thus, you don't have to deposit high capital anymore, in order to proceed with Forex trades.
Online brokers will try to make things look more attractive to you by offering specials. Rewards and bonuses are all inevitable part of the game.
The educational resources your broker shares with you will be the best motivator for you. For instance, Plus500 and Markets.com provide you with the market brokerage materials to increase your competence in the given subject matter.
Finding the Forex broker that suits you best is a serious choice that determines your entire market experience. Make sure you pick up the broker that will provide you the most convenient environment to succeed in.