If you’re in the market for a new forex broker, you may have noticed that the competition is savage. There are a lot of different options to choose from, so how do you make sure you are choosing the best forex broker?
There are different aspects to consider when choosing a broker, but probably none is more important than making sure the broker of your choice is safe and secure. How? The best way is to check out their registration with the appropriate regulatory bodies.
Regulated brokers not only work based on certain standards, but they have to protect the money of their traders, making them more serious and definitely more reliable!
Another option is to use this very detailed forex comparison website that will show side to side the characteristics of different brokers, making it easier to choose the one that suits your needs and trading style better.
Traders should be aware of what features the broker offers, how is the execution time, what currency pairs they offer, as well as how detailed is their platform, and how efficient their customer service.
How to choose a legit forex broker?
Making sure your forex broker is legit is not only very important but also a necessary step for any trader that wants to protect their identity and their money.
A legit broker will be registered with the regulatory bodies that oversee the activity in the forex market.
Each country has different institutions in place. Some are more flexible, like in Australia, making it possible for forex trading to work on a larger scale, while others are more conservative and strict, like in the US, where forex brokers have to prove to have very high solvency.
In the end, the goal is to protect the trader and make sure that operations in the market are transparent and legal.
So, make sure the forex brokers you are considering are registered as they should and double-check on the site of the regulatory bodies too. Better safe than sorry.
What to consider when choosing a broker?
There are a few different things to consider when choosing a broker. Each aspect may have more or less relevance depending on what are the traders’ priorities, expectations, and level of expertise investing in forex.
After making sure your broker is regulated, we can start thinking about the costs of doing transactions with a broker. Are there any commissions and fees in place? Do they offer high or low spreads?
All of this should be thought of before committing to a broker since it will have an impact on how much profit you can actually make.
Another aspect to consider is the initial deposit they ask for. Some are just a hundred dollars, others may ask for thousands.
On a different note, traders want to make sure the platform the broker is offering is up to their expectations and will satisfy their needs.
All brokers offer slightly different platforms, and some of them allow newer users to make a demo account and use it to explore their features. We prefer this and think it makes the broker more reliable and serious.
Finally, traders also want to consider the customer service the broker is offering. Sometimes “discount brokers” offer a much less efficient customer care service, meaning that if you find yourself in need, they may not be able to act as fast. It’s all about your priorities.