Brokers are the most important actor in the Forex market because they help the prospective traders to invest in the market profitably. This financial industry is getting popular with every passing day and hence, a large number of brokerage firms have mushroomed lately. Every day or so you can hear about a new merchant offering its expertise and skills in trading Forex online and guarantees a great return in the end. With so many merchants available, the real trick is to find the best one that is not only trustworthy but can escalate one’s career in the FX market to stardom. Every merchant claims that they are the best in the market and this make the decision of finding a legitimate broker extremely difficult for the individual concerned.
If you are someone who is new to the market and want to learn how to select Forex broker without getting scammed, then this is the best place to get started with. Here we offer you exhaustive information on the top 10 Forex brokers you can find in the industry in order to trade with. Also, you will find a detailed guide how to select a legitimate broker over a fishy one. So continue reading below and by the end of the post, you will have a great deal of knowledge in selecting a legitimate broker for your online trading. If you don’t want to undergo the hassles of choosing and selection, you can easily open a trading account with any of the brokers mentioned on our website. These are legitimate brokerage firms with great market ratings and are considered best in the industry.
Categorised Forex Brokers
How to Select a Forex Broker – Things to Consider
Before you fill the registration form and open a trading account with a respective broker, there are a number of important criteria that are worth considering. If you want to succeed it is imperative that you must have access to the best broker in the industry. It takes a quality amount of time to come across a good broker that can meet your trading needs. Given below are important guidelines that can help you in choosing the best merchant for your Forex trading.
- Regulation: It is important that the broker you choose must be a regulated one. There are several regulatory agencies like ASIC, CySec, FCA etc and your choice of the broker must be affiliated by any of the bodies mentioned above. If a merchant is regulated it clearly shows that it has clean records and has a solid financial background. You should take a few minutes to explore the regulatory status because you commence investing money with them.
- Security: The trading platform of the merchant concerned should be rated one of the best in the industry. Popular platforms include MetaTrader4, MetaTrader5 etc and make sure that your merchant is offering mobile trading on smartphone devices like Android and iPhone. The other area that you should focus is the encryption of data and safety of the funds. Your brokerage firm must offer “Multiple Layer SSL Encryption” so that your money is kept secure and hackers cannot able to sneak through.
- Communication: A reliable Forex broker is someone that establishes top quality communication with its customer and other clients. The quality of their support can be assessed by the fact how quickly they can respond to the individual problems and other trade queries. The broker should provide hassle free alternative delivery channels like the telephone call, video chats and email support that can allow one to easily interact with the customer care professionals. Make sure that there is a dedicated education centre with myriad trade journals and other articles on basics of Forex trading.
- Fees: Spreads is one of the most important sources of income for any FX broker and every merchant tries to offer maximum spreads. When selecting your choice of broker, make sure that they don’t charge more than 4 pips on your investment else you will not be able to make substantial profits. Different brokers offer myriad leverage options and you should select the one that is neither very high nor very low. An ideal leverage that you can go for your Forex trading would be 1:100. It will help you make a reasonable profit and prevent you from severe losses if you land on the losing side.
- Account Size: It is one of the most important factors when it comes to “How to Select Forex Broker”. Initially, many traders don’t have a sufficient amount of capital that they can invest in the market. So you should be on the hunt for those brokers that offer a very affordable amount say $25 or $50 to open a trading account. In this way, you would be able to trade easily without burning a hole in your pockets. Also, make sure that the broker offers numerous special promotions and other Welcome Bonus plans that allow you to make easy money for your future investments.
- Reliability: You need to read ample reviews about the broker concerned to access its overall reliability and trust. Go through the forum and other discussion websites to find out what people have to say about the overall services of the merchant concerned. Also, when you agree to open the account, read the terms and conditions properly and don’t be in a haste. Try to read between the lines and find out if there are any hidden costs or not. Some of the things you need to pay attention to like a margin account interest rate, rollover size, margin requirements and transaction costs. This will ultimately save you from any expected brawl with your broker in the future.
- Demo Account: Almost every broker is offering a demo account with an expiry period of 30 days. You must use this opportunity to explore more about the merchant. By opening a demo account, you will come to know about the trading platform offered by the broker and help you trade. At the same time, it will refine your trading skills and make you equipped when you start making live trades. If you are not satisfied with the services so offered by the merchant, you will always have the advantage of switching to another Forex broker without incurring any kind of financial loss.
Click here for a list of top 10 best Forex brokers in the Industry.
There is no good or best Forex broker but a professional merchant who would offer the best-rated services to make you earn from the financial industry. All you need is to find a professional brokerage firm that is regulated, reliable and someone you can completely trust with all your money. A legitimate broker will never promise 100% profit or any kind of “Happy Fairy Tales”.
If your choice of the merchant is promising you to make you rich with hundred percent success rates, then you need to understand that it is one of the scam Forex brokers. You should run away from them and never open a trading account. A broker will only guide you and you need to put in your Forex education and other strategies to emerge as a winner. Lastly, having a good broker is half the battle won and it is important that you invest a considerable amount of time and research in finding the best Forex broker for yourself. So tread wisely and don’t be in haste when it comes to how to select a Forex broker!