In order to trade Forex, traders got to choose the proper broker which will meet their trading needs. Whether it’s a beginner trader just starting out, or a complicated trader who is moving from one broker to subsequent. A reputable broker should be able to make investors and savers smarter.
- Security: It is imperative that traders evaluate the level of data security provided by the broker as traders are required to submit important, sensitive financial as well as personal data when opening a live account with a Forex broker.
Examples of such data include copies of identification, utility bills, credit card and banking information, and so on. Should the Forex broker not have the necessary security measures in place, this information can be accessed by hackers and either used or distributed.
2. Account Details (Trading Costs): These are the trading conditions that brokers offers and includes all trading fees that they’ll charge including spreads, commissions, overnight fees, and so on.
- Leverage– Traders need to have access to a variety of leverage amounts which is determined not only by the broker, but mainly by the regulatory body they are authorized and regulated by.
- Commissions and Spreads– A broker is generally purchased their service through commissions and spreads. Commissions are charged as a specified percentage of the spread which is that the difference between the bid and therefore the ask price pertaining specifically to the Forex pair that the trader is trading.
- Swap Fees– Forex brokers may charge fees concerning Forex positions that are held open for extended than 24 hours. A lot of Forex brokers offer the choice of converting an existing account into that of an Islamic account for traders who are Muslims following the shariah.
3. Deposit and Withdrawals: Traders got to check out a couple of factors concerning the depositing and withdrawal of funds to and from the trading account.
Your broker only holds your money to form trading easier so there’s no reason for you to possess a tough time getting the profits you’ve got earned. Your broker should confirm that the withdrawal process is speedy and smooth.
4. Trading Platform: This is another crucial factor that traders need to evaluate and compare as the trading platform used can determine a variety of possible outcomes and using the wrong one may be the difference between success and failure.
While some brokers offer a wide variety of trading platforms, other brokers may only offer their own in-house proprietary trading platform.
The only way that traders will know which trading platform will be suited to their trading needs is for the trader to open a demo account with the broker and to gain access to these platforms using the demo account that they have created with the particular broker.
5. Execution: Execution speed when trading may be a significant factor that the broker must be ready to provide at an adequate and above-average rate. The faster traders can execute orders, the better as a few pips difference in trade will make it harder for the trader to win that specific trade.
6. Customer Service: Broker websites got to provide traders with enough avenues through which traders can contact their broker, and a few of the factors to think about when evaluating the customer service of a broker include.
The competence of brokers when dealing with the account or technical support issues is just as important as their performance on executing trades.