Finding the right online forex broker you can trust with your hard-earned cash is not easy and requires some real work on your part . It’s crucial that you choose a reliable broker.
Here, we looks at the most important things to check before you can open a forex trading account with an online broker.
Finding a reliable online forex broker is vital, you need to a choose a broker that will meet your individual needs as a trader. If you don’t know what a forex broker is,here is a short explanation.
What is an online forex broker?
A broker is a company that buys and sells orders according to the trader’s decisions.
They act as the link between you and the forex market or any financial market for that matter.they provide you with all the tools you need to trade online. Brokers earn money by charging a spread or a commission for their services.
Your forex broker has a very important role in your success. So, it’s important that you choose a reliable broker to avoid troubles
Here are the things you should look for when choosing a forex broker:
1. Is the broker regulated?
When choosing a prospective Forex broker, make sure you choose a regulated broker.
A regulated broker means by law your funds are held safe.
Unregulated brokers can do as they want with your money. Some brokers can even block your account after you have deposited your money.
This is definitely something that you want to check first before anything else.
So, make sure you safe and go with a regulated broker.
2. How long has the broker has been in the business for?
If a broker has been around for more than 5 years, that means they have customers and that means they are good at what they do.
I am not saying you shouldn’t open an account with new brokers and they can’t be trusted but if you are going to open an account with a new broker you must be extra careful.
3. How is their service?
Forex is a 24-hour market, therefore a 24-hour support is a must!
To test their service send them an email and see how long it takes them to reply. If they take more than 24 hours, you might want to stay away from them. Your broker’s support needs to be available from when the forex market opens 5:00 pm EST Sunday through 4:00 pm EST Friday.
Having a reliable broker means knowing your brokers is always there to help you should you need them.
4. Online Trading Platform
Every trader is different, I enjoy trading with metatrader 4 (MT4) platform, unfortunately not all brokers offer this platform. Therefore, I wouldn’t choose a broker that doesn’t offer this platform.
Also, I don’t only trader currencies, I also trade commodities, shares, indices. So if a broker doesn’t offer all these things then I won’t choose it.
Make sure you choose a broker that has all the tools you need. The broker you choose must have a wide range of products.
5. Do they have micro and mini Accounts?
If you are a beginner, it’s probably best to start off small with a micro account until you’re sure you know what you’re doing. Unfortunatlly, some brokers do not offer micro and mini accounts.
These little accounts are a great way to get started and test your trading skills and strategies to gain experience. If a broker don’t offer micro account don’t open an account with them.
7. Minimum deposits
How much can you afford to deposit into your trading account?
This question is also important because minimum deposits differ from one broker to another.
8. Do they offer low spreads and commissions?
In Forex trading the ‘spread’ is the difference between the buy and sell price. That’s is what you pay your forex broker each time you place a position.
Now, I don’t know about you but the primary reason why i trade forex is to make money, therefore it’s only important that I keep my costs as low as possible.
6. Instant automatic execution of your orders.
This is also important when choosing a Forex broker, especially for scalper and day traders. Don’t settle with a broker that don’t invest heavily in infrastructure.
8. How easy it is to withdraw your money?
For your benefit and convenience, it is important to choose a forex broker that offers quick and easy deposits and withdrawals. Some brokers are very quick to take your money but when you have to withdraw it takes forever. Withdrawing should be quick and easy too.
They must also have multiple ways to fund and withdraw money from your account.
10. Are they reliable?
It is very important that you choose a broker that meet your needs and most important, choose a brokers that is reliable.When opened a trading account make sure you go with a well established broker.
Read online reviews to find out what other traders are saying about that particular broker, deposit small funds and see how long it takes, how much they charge for spread and commission, how quickly your orders get filled,how easy it is to withdraw your profit, etc…
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