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Profitable trading requires you to use a reliable brokerage service that aligns with your educational needs, learning styles, and, most importantly, your investing goals. If you’re a novice, take all the necessary precautions when picking a broker that suits your needs. Although there is no sure-fire way of getting decent returns, there is a way you can upscale your success by choosing the best forex traders.
Forex market is huge, with an estimated daily turnover of $3 trillion. And with that, the booming business has led to several broker houses establishments, trying to help customers make sound investment decisions. However, not every broker is reliable.
Here, we will provide you with the necessary information and fundamental factors that can help you pick a broker
1. Always go for Regulated Forex Brokers
Picking the right broker is the first step of being successful in trading. A good brokerage is determined by two crucial factors; financial transparency and regulation. Financial transparency plays a vital role in any successful, reputable, and reliable brokerage. For regulation, it ensures the right measures are taken to control how the brokers operate.
Different countries have different regulatory requirements. The National Futures Association is one of the supervisory bodies in the U.S. The self-regulatory company develops the rules, services, and programs to defend the integrity of the forex market, traders, and investors.
The U.S. Commodity Futures Trading Commission (CFTC) is an independent government agency that regulates the options and futures of commodities in the United States. Its mission is to defend the traders from manipulation, abusive practices, and scams that are related to the fiscal prospects and commodity sale.
These are some of the regulatory bodies every broker should work under. If you choose to work with unregulated brokers, you’d be creating potential problems. And in case you get conned, you’ll not get any help.
2. Reputation Matters
Forex trading is a sensitive investment. Most people have lost their hard-earned money to rogue and unscrupulous dealers. This is as a result of not checking the reputation of a given broker. Don’t get hoodwinked with low-ball prices. Choose a company with traffic and excellent user experience.
Reading high-quality reviews from users is a great way to determine the reliability of forex brokers. And be careful since some companies pay people to write positive reviews. Don’t forget to read Forex forums, which are specifically tailored for the Forex market. The forex community speaks openly about their experience with a particular broker.
Check their historical background. This is where you get the types of accounts offered, deposits and withdrawals, the safety of funds, trading software, and customer support. Although it’s regulated, it still remains a buyer-beware field.
When it comes to forex trading, you can either be a high or a low deposit trader. Whichever way you choose, ensure you check about brokers, their capital, and the number of employees. The higher the capital, the better it is for a high deposit.
4. Account Types
Each broker has the limit fund amount they accept. If you’re not a high deposit trader, don’t get discouraged. There is a myriad of reliable brokers offering micro or mini accounts. Even if you have a huge amount to trade, first get the knowledge and learn various patterns before you start full steam. Micro accounts are suitable for novices, and reputable brokers offer that as well.
5. Trading Software
Technological advances are enabling forex brokers to invest on the best platforms for their clients. It enhances user experience and promotes fairness. MetaTrader, or better known as MT4, is the most commonly used platform in the market. It has different forms that enable experienced traders to trade differently. “signal-copy” is a signal guide that delivers automated signals to users.
Today, it’s estimated that over 35% of investors conduct searches via mobile phones. Another research indicates that there’s a high probability for mobile trading to double. Hence, the best trader broker should offer mobile access for further trading. It means the customer can trade anywhere and at any time.
Choose a well-designed interface to avoid expensive order access mistakes. Most brokers will provide a demo account to enable traders to test the platform. Therefore, select a firm with several trading podiums and check for slow execution.
6. Deposits and Withdrawals
Depositing and withdrawing are the major functions in forex trading. Of course, trading is crucial, but you cannot do so without depositing. More so, the purpose is to make money; hence you need to withdraw your cash. A reliable broker should have flexible credit transferability such as Visa or MasterCard. There should also secure wire transfer for both withdrawals and deposits. Some offer wallets like Paypal, Skrill, WebMoney, and Neteller.
The minimum deposit is also crucial. There are brokers without minimum value deposit requirements, while others set their initial values. It can be as low as $2,000 to as high as a firm decides.
7. Real-Time Prices
Every broker tries to woo clients to use their platform. And the price is one of the baits they use. Some firms will promise to trade with the highest price. Well, this is not practical. Mostly, they use this statement to trick clients. A reliable forex broker will be real and offer real-time trading prices.
8. Customer Support
Just like in any other industry, customer support is a crucial part of a reliable broker. It’s the face of a firm and can make or break a company. A competent broker firm should have a well-developed support system to offer 24/7 help to the clients.
The employees should be polite, courteous, and well-informed. A customer needs to have a feel of belonging. There should be a verified email address and a local phone number. Some firms have live chats for real-time help.
Perhaps you should make a call and get the first-hand experience of the customer support system. Will they answer you promptly? Are they professional? Do they offer viable solutions?
A good forex broker should have fair terms and conditions with lower initial deposits for beginners. The broker should ensure you don’t struggle to trade. We hope these tips will help you secure a reputable firm that will take your financial stability to another level.