Forex broker plays an important role in determining the success rate of a trader by making his trading easier. Sometimes traders don’t have sufficient knowledge to deal with a situation, and because of this, they often choose the wrong brokers. As a result, these people hardly get any opportunities to make money from the currency exchange industry. Remember that, Forex market is full of fakers and scammers. Therefore, while choosing a reliable broker for trading purposes, you have to be careful of the fake ones.
Many beginners often ask about choosing these brokers to the professionals. Still, they make mistakes while selecting them. Here, we will outline some of the crucial tips that every newbie must follow during the selection.
1. Check the offered security
Will you hand over your money to a person who can’t give you good security? Probably the answer is, No. So, chose a well regulated and reliable broker. Reliable brokers provide strong security to the traders and don’t steal money. Therefore, a reliable person will ensure a good safety to the investor’s money. Some people don’t understand where to find these reliable brokers. To find them, traders can check whether they are regulated by any financial authority or not. If they are, the novice can go for them, and if they are not, it will be better to avoid them.
Some of the regulatory figures are –
- National Futures Association and Commodity Futures Trading Commission – USA
- Prudential Regulation Authority and Financial Conduct Authority – the UK
- Australian Securities and Investment Commission – Australia
- Investment Information Regulatory Organization – Canada
2. Commission fees or spread or transaction costs
When choosing a broker for getting access to a currency exchange business, a beginner should check the commission fees of the broker because many of these guys charge a higher amount of fees from the investors. Therefore, it is encouraged to find one who seems to be affordable and has the cheapest rate. However, in some cases, you may have to compromise with the quality. But if you do the proper research, you can find reliable forex brokers like Rakuten. They offer tight spread during the trade execution process and the price feeds are really accurate. Compared to their offered service, fees and commissions are really low.
3. Hassle-free withdrawal and deposit
Good brokers will make the deposit and withdrawal process hassle-free, and remember that there is no reason to make these processes difficult. It is your profit, so you can withdraw it at any time. If you notice that your hired one is making the withdrawal process difficult and delayed, then we recommend the newbies leave him because these guys can even steal the money. The job of a broker is to introduce a trader to the market and to facilitate his trading, and he also makes the deposit and withdrawal process speedy.
4. Offered trading platform and bonuses
Many newbies jump to those brokers only after seeing the random bonuses and attractive offers. Remember that, these offers and bonuses can be a trap of the fake ones. So, don’t jump after seeing all those random offers.
Another important thing is the platform. Good one will provide you with a user-friendly platform, in which the newbies can trade comfortably and can understand the chart and the price movement properly. Before selecting him, look for the platform whether it carries sufficient information to place an order for trading or ideal to use a few technical indicators or not.
5. Customer service and execution
Some brokers don’t respond to their customers timely. As a result, many potential trades and opportunities are lost. The speed and execution are very important in this case. One more thing, brokers may not be perfect, but they are ready for their investors whenever the traders face any problems related to the business.
These are the best tips to select a Forex broker, and we hope that this article will be helpful for you to find a reliable one for yourself.