Choosing a forex broker

Author: LegacyFX | Category: Education

What to know when choosing a forex broker

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When choosing the right forex broker, one must consider their preferences and set a list of unnegotiable features they would require from their broker. Undoubtedly, while reliability and trustworthiness are paramount other attributes are essential to consider and factor in.

Regulatory Body

Regulatory bodies that oversee a broker's conduct can provide traders with assurances as to the broker's credibility and the safety of their funds. Some leading regulation authorities are VFSC, CFTC, FSA, or CySEC. Therefore, brokers licensed by an official regulator are bound by their regulation's requirements, laws, and code of conduct, which help protect the trader.

Customer Service

In any field, be it forex or other industries, excellent client support elevates a company's reputation with its client base and gives the company another direct customer contact method. Popular techniques include phone, emails, chats, and review boards. Overall, brokers that offer multiple communication methods all increase their reachability and have greater opportunities to tackle client satisfaction issues.

Education and Training

A good broker presents its clients access to various educational materials and personal training sessions. Popular educational materials include webinars, tutorials, and e-books. Beginner traders with limited experience in the forex market generally benefit the most from such tools. Additional tools such as market analysis, economic calendars, and trading signals are usually fitted to clients with higher knowledge in trading to help them conjure fresh trading ideas.

Trading Platform

Currently, the trading platforms developed by MetaQuotes Corp dominate the industry. Nearly ten years ago, this company introduced the software that powers the well-known MetaTrader4 and MetaTrader5 trading platforms. Some prominent features that set apart the MetaTrader5 platform from competitors include 21 timeframes, six types of pending orders, switching between 'hedging' and 'netting' mode, and having a Depth of Market (DOM) function.

Payment Relationships

Inquire about a broker's payment opportunities is recommended. The more payment facilities a broker can offer, the more chances it has to expand its global prominence. Additionally, brokers affiliated with reputable banks and payment processors are less likely to experience deposit rejections and refund issues. 

Account Types

For beginner traders, brokers who offer demo accounts afford clients a safe place to test their trading environment. Additionally, it enables clients to get a feel for the broker before committing funds over. Generally, this can foster greater trust between clients and a broker by promoting a no-fault test run of services rendered. Also, brokers who offer account types and associated perks to clients who commit larger deposits and trading volumes open their doors to investors of all kinds.

Budget

Determining one's budget is possibly the most paramount factor when entering the world of forex. Having an in-depth understanding of the fees and commissions charged can significantly impact a client's choice of a broker, their trading volume, and deposit limits. Also, considering various constraints when it comes to depositing and withdrawing is helpful as well. 

Ultimately it comes down to a personal choice in what each individual trader is looking for and wanting to accomplish. Once that is decided, choosing a broker is simple and gets one closer to having a successful trading experience.

This article was submitted by LegacyFX.

 
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