Having a forex broker is very helpful if you are starting out as a forex trader. Choosing a broker is one of the most critical decision in this line of business. It is just like the relationship between doctor and patient. If you don’t feel comfortable with each other, it is never going to work out.
When it comes to choosing a broker, two aspects are of utmost importance, i.e., financial transparency and regulation. Since the forex market is of volatile nature, therefore you don’t want to get stuck with an undercapitalized broker who can shut down his shop without any warning and leave you in a huge mess. While selecting a forex broker, the following five points should be considered.
You cannot merely handover your thousands of dollars to anyone without scrutinizing their credibility. You can take help from the regulatory agencies all over the world to verify the reliability of a broker not make a mistake of trusting the wrong person with all your money.
- Transaction Cost
Transaction cost is cost you would need to pay every time for either the commission or the spread. You don’t want to lose all your earnings to bear this cost, therefore, choose a broker with affordable rates but reliability should always be your priority. You need to find the perfect balance between safety and cost.
- Deposit and Withdrawal
The best forex broker shall provide you with hassle-free deposit and withdrawal options. The only reason your broker holds your money is because it makes trading easier. There should be no fuss in you wanting to withdraw your own money, and the best broker will make sure that it’s speedy and smooth.
- Trading Platform
The trading platform used by your broker should not be complicated. It should be stable and user-friendly. While choosing a platform, make sure to scrutinize the platform he is offering for trade. Some of the essential aspects of the platform can be a live free news feed, user-friendly technical and charting tools, etc.
- Customer Service
The competency of an excellent broker is measured by their after sales services and dealing with technical support issues. The best broker is the who can be easily contacted for any problems. The best forex broker should be highly competent in both areas, i.e., performance and execute trades as well as dealings with an account and technical support issues.