How to Choose a Forex Broker?
Think about how much time, energy and money you’re wasting by calling your broker every day when all the information is available at your fingertips! Nowadays, with online trading platforms like XM, RoboForex, FBS, and Tickmill, it’s possible to buy stocks on a whim just as easily from the comfort of home.
At the end of this article, we will recommend you broker that we personally use and they have proven to be reliable.
Investing has come a long way in recent years due in large part to technology innovations such as Internet-based banking and stock market investing websites that have made managing investments not only easier but also more exciting than ever before.
In the past, you would have to call your broker and place an order for every action. Online trading changed this all by giving people access to their brokerage accounts from a computer or mobile device with Internet connection. Now investors can manage everything about their investments right in the online account itself!
It is hard to find the most suitable Forex broker with so many options for traders. However, if you know what kind of trader you are and identify your needs accordingly then it will be easier to find a good one. Picking a Forex broker is tough. There are so many to choose from that it’s difficult knowing which one will be perfect for you and your needs. But we’re here to help! It can sometimes feel like an impossible task, but with the right information, choosing a Forex broker doesn’t have to be hard or stressful- thanks in no small part due our helpful articles on this site (we’ll give them some more love later).
There is no best Forex broker. Instead, you should be looking for the one who matches your needs precisely. By knowing what kind of trading experience you want to have, it will become easier to decide on which broker suits your specific requirements.
Below are the criterion that you should consider when signing up for a Forex Broker.
#1: Regulations Brokers or Licensed Brokers
The world of trading is a dangerous place. When you’re doing it online, the risks are even higher because your funds can be more easily hacked through cyber-attacks and identity theft. That’s why we advise that only choose brokers authorized by leading regulation authorities like CFTC, NFA, FSA to protect yourself from any possible fraud or collapse in case something happens with the brokerage firm and its partners XM, Tickmill, RoboForex or FBS, for example who have been thoroughly regulated since their conception which indicates reliability on behalf of both parties involved.
#2: User Friendly Trading Platform and Technology
Forex trading should be easy – and not just simple. The best Forex platform for beginners is Metatrader 4, which provides an intuitive interface that’s both user-friendly and accessible to all levels of traders. So when choosing a good broker, be sure that they provide MetaTrader 4 platform for free.
You have to be careful not to get too greedy because the higher your leverage, the more risk you take.
The smaller brokers may offer up to x100 but it will only allow for small profits so if that’s all what matters then go ahead and use a high leverage from an established broker with lower fees. It just depends on how much money is in your account and whether or not you’re willing to gamble some of it away as well as any other factors like time constraints etc… If this wasn’t already enough information about Forex trading there are plenty of articles online that can help explain leveraging options even further!
#4: Customer Support
This is a key point. Good and efficient support can make all the difference when you’re feeling frustrated or uncertain about something, so do some research into your broker’s customer service before depositing. When you need help, you need help. Be sure they have live chat or very responsive email support.
#5: Deposit Bonus and Welcome Bonus
You’re probably wondering what the best way to start trading is. You could take your time, research all of the various platforms out there and find one that suits you in every possible respect or you can just head over to brokers like XM and RoboForex that provide deposit bonuses to help you boost your trading capital. These brokers also provide FREE USD30 for just opening an account with them.
#6: Ease of Deposit and Withdrawals
Brokers are often very strict about withdrawals. Check out the waiting time for your deposits and other written policies to find one that can work best with you. You want to make sure withdrawal is easy and without hassle. The last thing you want is a broker that gives you plenty of run-arounds when it comes to withdrawing your profits.
#7: Trading Fees, Commission and Spreads
Brokers often make their money through fees that traders pay. However, brokers will also be spending a significant amount of time managing the spread- which is the difference between what people are willing to buy and sell at on one side versus another for an asset like stocks or commodities. As such, it’s important for you as a trader to understand how spreads work so you can avoid paying more than necessary!
Spreads are by far the most important factor when it comes to FX trading. Knowing how your broker handles spreads can save you a lot of money in commissions and make sure that you have an even playing field with other traders who also rely on spread prices for their trades.
Some brokers offer fixed-spread pricing while others use variable, which is calculated at different points throughout any given day depending on supply and demand levels among currency pairs traded there over time.
#8: Demo Trading Accounts
Would you buy a car without taking it for a test drive? We hope not.
Similarly, before committing any money to trading with them, practice your trade at the broker’s account first! Almost all brokers now offer practice accounts that let you get used to their services and make sure they are what you need before opening an actual account.
#9: Account Minimum
Once upon a time, you needed to have high capital in order to trade Forex. Today’s brokers offer rock-bottom account minimums and less stringent requirements for opening an account — all with the goal of making it easier than ever for traders everywhere. These days you don’t need to have a lot of money in order to trade Forex. Many brokerages are offering rock-bottom account minimums, so you can start trading with as little as $1 today!
#10: Free Trading Education
The educational services your broker provides will help you master the Forex market. Most brokers offer a variety of tools to assist in traders’ assessments, and they are valuable for anyone who wishes to trade with success. If the broker truly cares for your success, they will provide plenty of valuable trading education for free. They want you to success so that you become their trading client for a lifetime.
How to Choose a Forex Broker… Conclusion
Choosing the right Forex broker can make all of the difference in your trading experience. The best brokers will provide you with a supportive and encouraging environment for success, give you access to educational tools like webinars or training classes, offer competitive pricing on trades as well as informative customer service representatives that are always available to answer questions. Make sure you do your research so that when it comes time to choose a trusted partner for life’s journey from rags-to-riches investments then choosing one who has proven themselves is worth every penny spent!
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