Five Key Factors to Consider when Selecting a Forex Broker

Finding a good forex broker is one of the most important things a trader can do. This is because of the central role played by brokers in the financial market. Brokers provide a platform where traders from around the world can buy and sell various instruments. There are thousands of brokers in the market today. As a result, finding the right company can be an overwhelming task especially for new traders. In this article, I will highlight the key factors you need to consider when selecting the best broker for your trading career.

Security

Safety is an important factor in selecting a broker. You want to sleep every day knowing that your money is safe and secure. Unfortunately, there are hundreds of companies that don’t guarantee this factor. As you search for a company, you should go for one that ensures maximum security of your money. First, you should ensure that the company is under a regulatory agency. The most credible authorities are: Financial Conduct Authority (UK), Swiss Federal Banking Commission (Switzerland), Autorité des Marchés Financiers (France), Commodity Futures Trading Commission (USA), and National Futures Association (USA). You should check whether the broker is regulated by any of these companies before making any transaction.

In addition, you should check the online security record of the company. As a trader, you will deposit and withdraw your funds electronically. This means that your payment footprint will be in the cloud. Since cybersecurity cases are on the rise, you should ensure that the website has the best safety and security tools.

Trading Platform

The forex broker that you chose should have an excellent trading platform. There are many trading platforms in the market today. The most common platform is the MetaTrader. In addition, some brokers have created their own systems. The rule is that you should select the platform that you are comfortable with. It should be easy to use and have many trading tools. The most important tools are technical indicators and a news terminal bringing in the latest information. The platform should also have mobile versions. In this, I recommend that you use MetaTrader 4 or 5 because of its ease of use and its availability on most platforms.

Available Tools

Traders use many tools to trade effectively. A good broker should help the traders to achieve their goals. One way brokers achieve this is to go an extra mile and provide tools that help traders achieve this goal. For instance, algorithmic trading is a process where traders create complex computer codes to automate their trading. Realizing this challenge, some brokers have introduced new drag-and-drop platforms to remove the bottleneck of coding. There are hundreds of unique tools that different brokers have created. As a trader, you should select a forex broker who has invested in diverse tools to ease the trading.

Deposit and Withdrawal

A good broker will provide you with a hassle-free method of depositing and withdrawing money. Today, there are many methods of depositing and withdrawing money online. These methods include credit cards, debit cards, wire or bank transfer, and PayPal among others. You should consider a company that provides your ideal mode of transfer. Also, you should consider a broker that processes funds within the shortest time possible.

Customer Service

Finally, you should consider a forex broker who invests in a high-quality customer service experience. As a new trader, you will definitely have many queries that you will want addressed. For instance, you may need a clarification on the methods of depositing or withdrawing money. In this, you want a company that has customer service professionals who respond to questions in a faster manner. You also want customer service professionals who respond to queries in a respectful way. Finally, you want a company that you can contact and get response using multiple platforms like Twitter, email, and live chat.