How To Choose A Forex Broker
Due to the massive competition between Forex companies and brokerage firms, different brokers are providing different benefits, yet, choosing a broker is not an easy job for any trader, regardless of experience
There are some fundamental aspects, such as the organization, nature of the capital, degree of trust, efficiency, and organization. These points are all measurable by the use of objective standards.
Real challenge that lies in choosing the best Forex broker for you emerges when you have to choose the criteria that you need, side by side with their individual advantages. You also have to determine the possible pitfalls of working with different brokers, based on what trading pattern you need.
Here you can find a list of questions that you may want to ask yourself before choosing a Forex company that suits you:
Is the Forex broker subjected to regulations? If so, in which country do these regulations apply?
To what extent can you rely on the trading platform of your company?
How much capital does the company have?
Does the company represent a broker or a trader?
What is the quality of the customer support?
How much does it cost (i.e. fees and type of the commissions)?
What types of accounts are available?
Does that broker provide any services with added value?
What are the levels of leverage and margin that are applied by the brokerage firm?
We display here detailed answers for some of the most important aforementioned questions:
- Is the broker or the Forex Company subjected to regulations? If so, in which country do these regulations apply?
Each country has its own regulating bodies, its own regulating environment, and requirements when it comes to financial registration. Therefore, it is very important for any investor/trader who is choosing a foreign exchange broker to make sure that the broker is based in a country where its activities are being monitored by a regulating body. Also, it is important to know if the brokerage firm is organized within the country, or by a separate entity, as the last type of organization can be more liberal in terms of the registration requirements.
The following examples list some of the countries that have regulating bodies dedicated to the Forex market:
The United States of America, United Kingdom, The European Union, , Japan, Australia, Switzerland
All traders must be aware of the regulating situation of the Forex companies, and have a clear understanding of the regulating body that governs the activities of Forex where the broker or the brokerage firm works.
2. To what extent can you rely on the trading platform of your company?
Based on the type of the devices and software used by the individual, he may prefer desktop or Java applications on the internet. Choosing a suitable platform is crucial for trading.
Also, it is very important to make sure that the trading platform does not freeze or break down many times, especially at the times of the global economic news or important events, when traders need stability. The platform’s reliability should be more important than its appearance.
Experienced traders need to make big deals or numerous frequent deals, that’s why they always look for a completely stable platform, or a platform that seldom breaks down, and this is the best that the Forex companies can offer. On the other hand, a novice trader who does not monitor the market round the clock, can be more flexible