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Top 6 Things to Consider While Selecting a Forex Broker

Top 6 Things to Consider While Selecting a Forex Broker

 

At present, the retail Forex market is extremely competitive, and therefore,

you will get a major headache if you simply think of sifting through all the available brokers.

 

It can be quite confusing to select which particular Forex broker to trade with particularly

if you don’t have any idea of what you ought to be searching for.

 

In this section, we are going to talk about the qualities that you ought to look for

while selecting a Forex broker.

 

  • Security

 

A high level of security happens to be the first characteristic that should be possessed

by a competent broker out there. In the end, you will not be handing over a lot of

cash to an individual who just claims that he is legitimate.

 

Luckily, it is not difficult to verify the credibility of a Forex broker at present.

You will find regulating companies around the globe that separate the reliable from the deceptive.

 

Below, we have provided a list of nations along with their corresponding regulatory bodies:

 

United Kingdom: Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA).

 

United States: Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA).

 

Switzerland: Swiss Federal Banking Commission (SFBC)

 

Australia: Australian Securities and Investment Commission (ASIC)

 

Canada: Investment Information Regulatory Organization of Canada (IIROC)

 

France: Autorité des Marchés Financiers (AMF)

 

Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)

 

Even prior to thinking of putting your hard-earned cash in a broker, ensure that the broker happens

to be a member of the above-mentioned regulatory bodies.

 

  • Transaction Prices

 

You will always be required to pay transaction costs irrespective of the type of currency trader you

happen to be.

 

Each time you get into a trade, it will be mandatory for you to pay for either a commission or the spread,

and therefore, it is only natural to search for the most inexpensive and the most affordable rates out there.

 

At times, you might be needed to sacrifice a low transaction for a more dependable broker.

 

Review all of your available options after making certain that you know whether you require tight spreads

for your sort of trading.

It is all about figuring out the proper balance between low transaction prices and security.

 

  • Withdrawal and deposit

 

You will be allowed by the good Forex brokers to deposit funds plus withdraw your earnings without any

hassle whatsoever.

 

Brokers actually do not have any reason to make it difficult for you to withdraw the profits since facilitating

trading happens to be the only reason they tend to hold your funds.

 

Your money is held by your broker for making trading easier such that there isn’t any reason for you to

have any difficult time obtaining the profits which have been generated by you. It is imperative for your

broker to make certain that the withdrawal procedure is smooth as well as fast.

 

  • Trading Platform

 

The majority of the trading activity takes place in online FX trading by means of the trading platform of the brokers.

This implies that your broker’s trading platform ought to be stable as well as user-friendly.

 

While searching for a broker, always verify what exactly it’s trading platform has got to offer.

 

Verify whether it offers news feed for free. What about simple-to-use charting and technical tools?

Does it provide you with all the info that will be required by you to trade effectively?

 

  • Execution

 

It is imperative for your broker to fill you have the best feasible cost for your orders.

 

Under standard market conditions (for example, normal liquidity, no surprising events

or vital news releases), there is no reason for the broker not to fill you at,

or quite close to, the market cost that you see while clicking the “sell” or “buy” button.

 

For instance, presuming that you own a reliable Internet connection, you ought to get

filled at the cost or within micro-pips of that cost in case “buy” EUR/USD for 1.3000 is clicked

by you. How fast your orders become filled is quite vital,

particularly if you happen to be a scalper.

 

Several pips difference in cost will make it quite difficult on your part to win that

particular trade.

 

  • Customer Service

 

Service brokers are not perfect by any means, and because of that,

it is important for you to select a broker whom you can contact easily in case of any problem.

 

The proficiency of brokers while handling technical or account support issues are equally

crucial as their efficiency in performing trades.

 

Even though brokers might be helpful and kind throughout the account opening

procedure they usually have awful “after-sales” assistance.

 

 

Written By : YOUSSEF J A ALMEER

Image rights @ fxdailyreport.com

Forex Broker

About Yousef J A Almeer

Yousef J A Almeer is a daily technical analyst and speculator since 2014 in international markets and has used the School of Classic Technical Analysis (Classical Technical Models) while combining this with price action strategies. As is well known in the financial management of investment portfolios and the correct way to use the sizes of contracts and deals appropriate to the capital used as I use a special strategy and a recommendation in several applications. You can view the real trades through the FREE FOREX SIGNALS app in the various mobile application stores.