The Forex market presents a huge number of brokers that offer different trading conditions. It isn’t an easy task to choose the most decent of them. To help you to find the worthiest candidate, we suggest you to familiarize with the list of qualities that a reliable Forex broker should have.
- The depositing and withdrawing funds process
- Fee for service
- Orders execution
- Quality of service support
- Trading platform
So, when choosing a broker, you must pay attention to the following factors:
This factor is the most important when choosing a broker. Would you trust your money to somebody only because he just assures you of the legitimacy of his activities? Of course, not! You need proof. Fortunately, it is not so difficult to check a broker. There are the special bodies which regulate dealing centers. When choosing a broker, you should pay attention to the fact the broker is a member of the governing body or not. The list of such bodies, depending of the broker registration country, includes:
- USA: National futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
- UK: Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA)
- Canada: Autorité de marches Financiers (AMF)
- Australia: Australian securities and investments Commission (ASIC)
- Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Switzerland: Swiss Federal Banking Commission (SFBC)
- France: The Autorité de marches Financiers (AMF)
The depositing and withdrawing funds process
A good FX brokers will allow you to deposit and withdraw your funds without any problems. Brokers have no reason to delay or complicate the input-output funds process for you.
When choosing a broker, examine feedback from other clients about a particular broker. If you learn that many clients complain about problems with withdrawals, this broker should be treated cautiously. Your task is to make sure all transactions go smoothly.
Fee for service
All brokers charge a fee for their services. Therefore, you will always incur some transaction costs. The most common type of commission is the spread. Also, most brokers charge a fee for a rollover or payment for transfer an open position during the following day. There are also other types of commissions.
Of course you want to pay less. But sometimes you have to sacrifice narrow spreads for the sake of reliability. Many unscrupulous brokers set a minimum fee specifically for customer’s lure.
Make sure that the broker doesn’t lower its commission, by comparing several variants. This will help you to find the right balance between spending on security and economy of your funds.
Make sure that when making execution there are no slippage. It is a prerequisite that you were able to make a deal at the best price.
Remember that in normal market conditions (no important news, normal liquidity, etc.) a broker has no reason to execute your order not at the requested price that you see when you click “buy” or “sell”.
In Forex trading the difference between the actual price and the order price even a few points can cost you a lot of money. Therefore, make sure that the broker has not often slippage.
Quality of service support
Timely solution of your problems is one of the main requirements broker. If you can’t contact customer support, or its employees are unable to solve your problems quickly, eventually you will suffer losses. So choose the broker that are always available and ready to answer any of your questions.
Keep in mind that brokers can be good and useful in opening an account process, but being disrespectful to their customers after the sale.
The trading platform of the broker should be comfortable and stable. It will provide you good trading results and protect you from undesirable damages.
When looking for a broker, always check what its trading platform has to offer.
Is there a free channel of news? Has the broker easy using charts and technical tools? How reliable is the broker’s trading platform – are there any problems with the server? You need to find the answers to all these questions to choose a really good broker.