Finding a Forex broker was never easier – here is what you need to know

by Groshan Fabiola I try to cover as many topics as I can

Experts state that online Forex trading is one of the fastest-growing financial markets in the business world and the number of traders is in continuous rise. You may be one of the people who want to start trading, and as you already have found out you need to select a broker.

This article will introduce you to a set of factors you have to consider when you choose a Forex broker.

But, first you need to find out what a Forex broker is

It is your entryway into the currency market, it will provide you a trading account you can use to speculate on different currencies. This is the main thing brokers have in common, after this they can differ in countless ways from each other. From fees, to the option of currencies, and the way in which you can place an order to buy or sell currencies, Forex brokers come in multiple sizes and shapes.

Why do you need a Forex broker?

You may think that you can do everything by yourself; it’s not so difficult in theory to trade currencies. But, think about this, to make a profit you need to exchange thousands, even hundreds of thousands of currency units. This is where things get complicated. Let’s take it a step further. The Forex market sees $4 trillion worth of currency change hand daily. This means that it’s impossible for you to find a buyer or seller at the best price.

Here is when the forex broker comes in to help you.

Your forex trader will arrange your trades and leverage them in exchange for a small fee.

Are you ready to find your Forex broker? Here is what you should look for

Security

The most important feature a good broker must have is a high level of security; you want to know that your savings are safe. Do you trust handing your savings to someone, you have no information about, one but who claims they are trustworthy? NO. Same goes here. You can easily check the broker’s credibility. Regulatory agencies are constantly reviewing all the brokers available on the market, are verifying their services and separating the fraudulent ones from the reliable ones. They list them according to their credibility, and all you have to do is to check if the broker you want to use provides a high level of security.

Most of the countries have their own regulatory bodies, so when you select a Forex broker you should check where it’s from and see if it’s a member of a regulatory body.

Transaction costs

You will pay a fee no matter what broker you select and what type of currency you choose to trade. For every one of your trades, you will have to pay a commission so it’s important to choose the broker that offers the most affordable or even the cheapest rates.

But make sure you don’t sacrifice a reliable broker for one with a low transaction, it can bring you more financial loses than you could imagine.

You should check if you need tight spreads for the type of trading you want to perform, and then look out on the market for solutions. You should maintain a balance between an affordable fee and a secure broker.

Withdrawal and deposit

A good Forex broker will allow you to deposit cash and to withdraw your earnings without difficulties. Brokers’ only purpose is to hold your funds and facilitate your trades so there’s no reason why one of them would make difficult for you to withdraw your profit. The broker will hold your money to make your trades easier, so they should create their services in such a way to make the withdrawal process smooth and speedy.

The trading platform

You are living in a digital era so it’s understandable that you prefer online Forex trading. This means that your entire activity will happen through your broker’s trading platform.

When you search for one you should not forget to check their platform to see what features it offers and if it comes with user-friendly characteristics. Fx-List can help you identify the Forex brokers that offer their users easy-to-use platforms. Actually, this online source can offer you detailed information on a wide range of online brokers.

What should you look for when checking the trading platform?

- Do you have free access to the news feed?

- Can you access charting and technical tools? How easy can you use them?

- Does it offer all the information you need to complete your trades successfully?

Execution

A good broker is one that fills you at the best possible price for your orders. If you are doing business under normal market conditions, no surprise events, no important news releases, and normal liquidity, the broker has no reason to fail at doing this. It should fill you at the market price, the one you see when you decide to buy or sell.

It’s important to have a stable internet connection for it, don’t forget!

So, you hit the buy button to purchase USD, let’s say, for 1.0000, you should receive it at that price or within micro-pips of it. Check the speed, at which your order will be completed, it will make the difference if you are a scalper.

If the broker completes the business with pips differences in price, you will probably not win with your trades.

Customer service

Not all Forex brokers offer flawless services, and you should make sure that the one you select has amazing customer service. If you will face problems when completing your trades you want to know that you can easily contact a specialist to help you.

The competence of the broker when solving your technical or account problems is as important as its other capabilities.

Do your research if you want to complete your trades successfully. Register on a platform only after you build a full picture of multiple brokers, it will help you make an informed decisions.