How to Choose a Forex Broker: All You Need to Know

Before you start looking for a Forex broker, you need to make up your mind about the category of forex investor you belong to and what goals you plan to reach by investing in currencies. Each broker giving access to Forex investments has their advantages and drawbacks. The key parameters that you should check is whether the company is licensed by an authoritative international regulator; whether it guarantees safety of your money and personal data; and the size of the commission fee. 

Most Forex brokers are licensed by various regulators, including such competent and trustworthy ones as BaFin, CySEC, FCA, SEC. However, there are brokers that are not registered in regulating organization, and you should stay away from such companies.

Also, brokers differ in terms of trading platforms they give access to, conditions on trading accounts, and the size of commission fees for financial operations. To choose a suitable trading terminal, you need to account for numerous factors.

Advice on choosing a Forex broker

Firstly, looking for a reliable broker, never hurry: double-check everything and make sure that your personal data, trades, and assets will be safe. These are vital things to find out in advance so that opening an account, you could be sure that the broker will not steal your money or breach the confidentiality of the personal data you provide.

Before you put money on your new account, study the withdrawal and depositing procedures carefully. Some companies might introduce additional waiting periods when you cannot trade after account depositing by bills or electronic transfers, while others might charge crazy commission fees for money withdrawal or closing the account.

A great advantage is the availability of the Client Support service via a chat, phone, or email 24 hours a day. Always check whether the support team works day and night so that you could solve any problem as soon as it emerges.

Forex trading platforms

All FOrex traders online work via the software provided by their brokers. These years, the Meta Trader terminal by MetaQuotes has become a universal branch standard providing a wide choice of options and functions, including quotations updates real-time, price charts, news, analytics, and customizable views lists. 

Many Forex brokers offer demo (learning) accounts that are meant for trading virtual money. Demo accounts have the same parameters as real ones which is a valuable resource for checking the correctness of provided quotations and trading conditions.

Does your broker offer learning programs and trading instruments?

Brokers with good reputation offer their clients various resources that help to make more balanced trading decisions and improve their skills. Check the Learning section on the websites of broker companies and see if they offer a wide range of webinars and learning materials on Forex trading, descriptions of trading methods for popular assets, or other useful information.

Closing thoughts

Do not rush at choosing a Forex broker because wrong decisions might cost you a lot. Choose those that offer reliable resources, low trading costs, and the widest of all access to the world interbanking system. Also, they must guarantee and provide for correct use of your daily trading strategy even when you open an account with a small sum, hoping that your skills will let you make a fortune. 

Author: Oliver Curtis

Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.