There is no central marketplace for trading forex, and anyone wishing to trade or invest in it must choose a forex broker to facilitate their trading activities. With a large and growing number of brokers, choosing the best forex broker
means that you have to cautiously sift through an overwhelming number of internet and magazine advertisements. This can be a major headache especially when you do not know what you should be looking for.
Security comes first when choosing the best forex broker to trade with. All brokers should be regulated by an authority such as the National Futures Association (NFA) in the US, or the Financial Conduct Authority (FCA) in the UK. These regulatory bodies observe brokers and enforce best practices and legal behaviour to help ensure traders are protected.It is worth noting that there are some brokers out there who claim to be regulated when they are not, so it is always worth verifying the company’s registration with the supposed authority. Brokers are also obliged to have their registration information available on their website. If a broker does not have this information readily available, this should serve as a warning sign that perhaps the broker should not be trusted.
Trading is already challenging enough; it does not need to be complicated further by a poor trading platform.When deciding if a broker is the best forex broker for you to trade with, always check what its trading platform has to offer because you will be undertaking most of your trading activities through the broker’s platform.The trading platform
must be stable and user-friendly, and a good trading platform should be able to give you all the necessary information you need to streamline your trading experience.It should incorporate easy-to-use technical indicators and charting tools, offer free news feeds, offer real-time trading functionality by allowing you to trade directly from the charts, and let you automate trades based on set parameters. It should also have a mobile app, incorporate technical analysis software, and order management capabilities. .
Trading comes with transaction costs, and no matter the kind of a trader you are or your trading strategy and style, the costs of trading with a broker should be an important consideration.You should not simply go with the broker offering the lowest fees, but instead consider the costs in relation to what the broker offers in terms of technical and customer services.A scalper
who executes up to a hundred traders per day is likely to be impacted by transaction fees more than a position trader
who may make a single trade every day or so. Therefore, the scalper is likely to prize lower transaction costs than the position trader, but at the expense of an ultra-fast execution time?Because of the nature of how a scalper makes their profit, lots of little bits of profit on lots of trades, execution speed is of vital importance to the scalper’s strategy. They would therefore have to weigh up the potential profit lost due to slower trade executions compared to the extra paid in transaction fees.Other traders, particularly those new to trading, may consider a broker offering an exceptional standard of customer service to be a better fit for their needs than the hands-off approach taken by some of the cheapest brokers to trade with.
Deposit and Withdrawal
The only reason a broker holds your money is to facilitate your trading activities and make trading easier. There is no reason at all for it to give you a hard time withdrawing your earned profits or depositing some additional amount to replenish your equity. Choose a broker who gives you a speedy and smooth withdrawal process. If a broker has lengthy and cumbersome withdrawal procedures that result in delays, then you are better off without it. The best forex broker will let you deposit funds and withdraw your profits hassle-free.
As touched upon earlier, speed at which the broker executes trades is a vital component of some traders’ strategy. However, it should be a consideration of all traders. While order spillage should be considered a natural occurrence from time-to-time, it should not become accepted as part of trading with a broker. Your strategy will involve you buying and selling at certain prices, so when you click the
sell button, your broker should be able to fill you at the exact price you see, or as close to it as possible. The speed at which your orders get filled is essential and can mean the difference between a losing and a winning trade, especially when there are a few pips difference in price. The best forex broker is the one who fills your orders at the best possible price.
Brokers’ sales teams are likely to be very helpful, supportive, and kind when getting you to open an account, but it is worth researching some reviews of the broker’s client customer service.Customer service will be of differing importance to different traders. Some more experienced traders will likely favour a more hands-off approach to customer service if it means they will receive lower transaction fees and tighter spreads in the trade-off. However, if you are having issues with your account and you cannot reach out to your broker for assistance, this can devastate your trading schedule and lead to losses. Your broker should be competent enough to provide you with technical support and fix any issues that you might have with your account. Make sure to choose a broker with clear contact details so that you can easily use to reach out to them when faced with problems.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The Client agrees the Company provides execution only services and that any information, reports, opinions, commentary or other materials received from the Company directly or from its employees or through any analytical tools provided or third party research provided from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions.The Client commits to make their own research and from external sources as well to make any investment. The Client accepts the Company will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of this document should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.