With the rapid rise of Forex Trading over the last few years, the number of brokers available in the market is also growing at a rapid rate. Whether you are a retail or small institutional forex trader, you need the best forex broker to trade with. The broker is the person or business that facilitates your interaction with the forex market. With a reputable, trusted and capable forex broker, you can trade the forex market and take advantage of profitable trading opportunities daily. Hence, it would help if you found a recommended broker with which many customers have had positive experiences.
However, most traders end up scratching their heads when choosing a reliable broker in the industry. Selecting the right broker is not a static activity. Instead, it is a dynamic activity that depends on one or more of the following:
- What stage of your trading career are you in?
- Do you trade your own money or manage other people’s money?
- Your amount of trading capital
- Services of forex trader you need
Further, to give you ease, here are a few essential things to consider when finding a forex broker. Continue reading!
This is quite obvious! You would not want your broker to flee, taking all your hard-earned money with them. The FX market is devoid of regulations, so there are many brokers to choose from; however, some are more reliable than others. Hence the first step towards choosing a broker is to check the reliability. They must be registered with Australia’s ASIC (Australia’s Security and Investment Commission) agency. This regulatory body closely monitors Forex brokerages serving the Australian population. Also, ensure the one you choose has an impeccable record of any complaints against them.
Forex broker costs
Online forex brokers do not take commissions from their customers, so they make their income from the difference in the Forex trading spread. The forex trading spread can range from 1 pip to around three pips or even less; this will depend upon the online Forex broker’s terms of service and the chosen currency pair. So it would help if you scrutinized at what level the spread will be computed.
Margins are also known as deposits. These are a variable that varies from forex broker to broker. Margins are meant to magnify your opportunities for making more money. A lower margin requirement gives you higher leverage, and higher leverage gives you the ability to create greater profits or losses from a fund of the same size.
Services provided by the best forex brokers
The forex markets trade from Sunday evening through Friday afternoon, so make sure that your broker’s trading platform is reachable and offers around-the-clock customer support. Make sure they cover seven main currencies: USD, JPY, CAD, AUD, CHF, EUR and GBP. The best forex broker will also offer essential tools like technical analysis and financial trading charts.
Customer support being provided
The quality of customer support is essential, especially when you have just started using a Forex trading platform. Like with all new things, there will inevitably be teething troubles, and you will want to be able to speak or email someone and get an instant response. Only the best forex broker will provide you with this service.
That was it! These are the five essential things you must keep in mind when hunting for a broker in the forex market. Lastly, remember that the choice of a broker is your personal decision. Do not leave this selection to anyone else because you will bear the responsibility and the consequences of your decision.
Alison Lurie is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.