Choosing A Forex Broker

The FX market is such a fiercely competitive market that just thinking about which broker to approach will be a tiresome task, especially if you are not sure what you are looking for!

In order to trade in the FX markets you need an FX broker.

But what is a Broker? A broker (brokerage firm) is a place where buyers and sellers of different currencies, from the FX markets, come together to buy and sell. It operates as a middle man between the trader and the market, and it also provides the financial tools required to be able to carry out these transactions, such as the online trading platforms.

Factors to help choose a Broker

• Regulation and licencing

A crucial point when choosing a broker, you are investing your money in this entity so it is important that it is regulated and authorized within its financial jurisdiction.

• Safety of Funds

A reputable broker should take extreme measures to ensure that client’s funds are always 100% secure and governed by the principal of SAFETY.

Client’s accounts should be segregated and kept in different accounts to company accounts.

The broker should also guarantee it uses reputable banks for clients to deposit their funds.

• Variety of Methods for Deposit and Withdrawal of Funds

A successful broker should cater for the needs of all its traders. Therefore, it should offer a variety of fast and efficient payment methods where deposits and withdrawals are carried out at great speed and without problems.

The methods of payment should also be safe and secure.

• Tight Spreads

An attractive feature for traders as the lower the spread, the more profit they can make.

• Fast Execution

The faster the execution of the trade the more satisfied a trader is, as he is obtains the price he wants, as well as seeing the market depth of the price itself. There is an element of transparency with the absence of a Dealing Desk.

• Variety of Accounts

A good broker will offer its traders a variety of accounts, with different contract size, lots traded, different leverage and different stop levels and margin calls.

• Online Trading Software

Since online forex trading takes place on trading platforms, make sure the broker you choose offers the latest trading platform, which must be user-friendly and reliable, as well as fats and efficient.

The platform should offer easy-to-use technical and charting tools, educational tools, financial instruments to use and should be available in different languages.

• Excellent Customer Service

The importance of a good customer service remains undisputed. A client needs to have confidence that his problems and queries will be solved at all times, facilitating his trading activity.

All in all, the more experienced you become in FX trading and the industry itself, the easier the selection task for an FX broker!