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Forex trading is becoming more and more popular throughout the world. However, no matter how much experience a trader has, they must still take care when choosing a Forex broker.
The quarantine has affected small businesses dramatically. Additionally, many people have lost their jobs due to COVID-19. Therefore, many people are looking for other ways of making money.
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Naturally, while Forex trading won’t instantly make you rich, it is still a lucrative option for investments, especially if you know what you’re doing—or you have chosen a good Forex broker.
Since no two Forex brokers are identical, let’s look at five crucial things that you have to consider when choosing a Forex broker.
1. Choose a Forex Broker Who Offers Appropriate Security
A Forex broker who lacks security options is a broker who doesn’t care about the traders who are using their platform. But how do you check their security?
Well, first of all, a Forex broker must be regulated by an appropriate institution such as IFSC, CySEC, or ASIC. Then, if possible, they must also include additional ways to protect traders’ funds. For example, this XM review points out that some Forex brokers will hold funds in segregated accounts.
2. Look at Transaction Commissions and Other Costs
Forex traders are subject to fees, commissions, and other additional costs. This is how brokers get their share of the trade. However, some Forex brokers choose to take more than they should.
On the other hand, Forex brokers who charge low transaction fees and commissions often lack security. Therefore, it’s best to choose a Forex broker who provides the ideal balance between trading fees and security options.
3. Customer Service Is Important When Choosing a Forex Broker
Things may not always work as intended when trading on a chosen Forex broker’s platform. For this reason, you will want to find a Forex broker who is available to answer traders’ queries at least most of the time. This markets.com review points out that even though some Forex brokers don’t offer 24/7 support, they do provide fast response from a great customer support team when needed. This is a critical factor for most traders.
4. What Trading Platform Does the Broker Use?
There are a lot of platforms brokers can choose to offer to Forex traders. Moreover, a broker can simultaneously offer their services on multiple platforms. While this is beneficial for traders who don’t enjoy specific platforms, it can also be a sign that the broker is not that good.
For example, most traders avoid brokers who don’t use the MT4 platform. The MT4 platform is the most popular, reliable, and widely used platform in the world. Given this, every good broker should offer it as an option to their potential traders.
5. What Are the Broker’s Fees for Withdrawals and Deposits?
Anyone moving funds online should be deeply concerned about withdrawals and deposits, including the fees that may accompany them. Above all, these two procedures should be trouble-free.
A trader shouldn’t have to worry about additional fees when depositing or withdrawing funds. In fact, many brokers don’t charge anything for these procedures. For these brokers, their primary way of earning money is by way of commissions on trades.
Choose Your New Forex Broker with Great Care
The more popular Forex trading becomes, the more brokers we can expect to see on the market. The very first thing you should check before making your choice is whether they are regulated by appropriate financial bodies or not.
After that, consider their level of security and their commission costs. If these are balanced and satisfactory for you as a trader, you can feel comfortable with giving that broker a try.