Being a trader in the foreign exchange market, you are required to find the most suitable Forex broker that can help you with your trades.
If you ever come to visit a financial website, you will see a bunch of advertisements that introduce different Forex brokers including their features and capabilities.
But it is important to pick only the right ones. And with that, you have to take a closer look at these five important things you have to consider when choosing Forex brokers.
First and foremost, the very first thing that a broker needs in compliance with regulations because it represents their reputation.
In the U.S, being a reputable broker means that he is a member of the National Futures Association (NFA), which is a self-regulatory organization that focuses on the futures industry.
They also need to be registered at the Commodity Futures Trading Commission (CFTC) that regulates the options markets and futures markets in the United States.
You must not get blinded by those flashy adverts of brokers. You need to make sure that they are members of a regulatory body because this will be the basis for your safety in trading.
Different brokers mean different account offerings. You have to check these four areas when you compare the features of Forex brokers – initial deposit requirements; leverage and margin; commission and spread; and easy deposits and withdrawals.
Currency Pairs That Are Being Offered
There are different currency deals available for trading. However, very few get to have the most attention and this means that they are traded with great liquidity.
Currency pairs like EUR/USD, USD/CHF, GBP/USD, and USD/JPY all belong to the major pairs in the Forex market.
A broker might be able to offer different kinds of Forex pairs, but what’s important is that they can offer the currency pair that gets most of your interest.
Another very important feature of a Forex broker is its availability to respond to your queries 24 hours a day.
There also needs a live person that can assist you on the phone whenever you need one. Giving a quick call to your broker will give you a glimpse of the type of customer service that they are offering as well as the waiting time to connect to the customer service.
The last point is of great importance. The broker that you will choose should offer the trading platform that you prefer.
The trader also needs to make sure that the broker offers a trading platform that has all the features and analysis that you need like fundamental and technical analysis.
These are very important tools to exit and enter a trade with ease.
You can also identify whether a trading platform is well-designed or not based on its buy and sell buttons.
It must be placed in a visible area so you won’t panic every time you open and close a position.
If a trading platform is poorly made, chances are, you will lose so much with your trades because every minute counts in Forex trading.