how to choose the best forex brokers | tips for beginner traders
Novices, intermediates and experts – all Forex traders need the assistance of a good broker to see a higher rate of success and to see the same in the long run. Their integral nature has become a deciding factor today, and without a reliable broker by your side, bagging profits is an onerous task. Forex trading is a field that can grow to be incredibly rewarding when approached with the right methods, and this approach is often heavily influenced by the Forex broker you have! Hence making brokerage a vital component of every trader’s run in these markets.
Recently, a number of brokerage firms have emerged, and many of these companies sugar-coat their claims to lead novices into investing big money on risky grounds! In such trades, the broker walks away with a full pocket while you suffer losses. This is why these factors ought to be considered before hiring the services of a broker:
1) Currency Pairs Provided
While you might feel working with a handful of currencies is enough, down the line, diversification will be crucial in Forex trading. It is always advised that you sign up with a broker who has a variety of currencies to work with. Pairs big and small are always volatile. Trading the same pair will do no good because when the time comes and it sees a depreciating value, you will need alternatives!
2) Efficiency of Their Customer Service
This is something you can study right off the bat. By availing a demo service from a potential Forex broker, you can get a clear idea of how they treat their traders. Why this is important, is because initially, you will require babysitting from a professional. Trades have the potential to get destructive very quickly, and you will have to make nick-of-the-moment calls. These intense decisions are better made with the help of a cooperative and reliable broker. Thereby making the quality of customer service an important factor.
3) Regulation From an Established Body
Regulatory compliance is something that can’t be stressed enough when it comes to Forex trading. The heavy competition doesn’t exist between traders alone, even brokers see a lot of stifling competition. The crowded markets have birthed an environment where brokers scam novices in an aim to make quick money. Regulatory bodies watch over the actions of these firms and ensure traders stay protected.
4) Demo Trading Facilities
Practice has to be constant to see constant results – that’s the core formula for succeeding as a currency trader! Forex demo allows you to learn the basics first-hand. A field as tricky as foreign exchange requires that you learn the essentials prior to trading real-time. A good broker will provide you with a demo platform and assist in learning the necessaries.
5) Customer Reviews
Unless you are the very first customer for a particular Forex broker, you should go through the reviews others leave. Customer reviews greatly help asses and get a clearer idea of how efficient the broker is and if they are worth working with. These even highlight if they charge unjustly, are not reliable, or even if they are scammers.
6) Transaction Costs Charged
Brokers levy a small fee for each trade, that’s how they make money. As a Forex trader, you are likely to sign up with a brokerage that charges the least, relatively. But this is a tricky call to make. Going too low might indicate that the broker isn’t reliable. You will have to find the perfect point where the prices aren’t too exorbitant and at the same time, the service is of good quality.
7) Quality of Trading Platforms
From identifying a good trend to performing an in-depth analysis of a market, you will require trading platforms for a plethora of reasons. The platforms offered to differ from one broker to another. Additionally, your broker should help you trade, not just equip you with a platform and leave! Review the quality of their trading platforms by demo trading, before signing up full-time.
8) Website Quality
A very quick way to ensure your Forex brokers is here for good, and not a fraudulent agency, is by seeing how efficient their website is. A good, reliable broker has a top-notch website with no bugs, neat presentation of services, call button, and essentially a website that looks good overall. Scammers won’t spend much time decorating their site!
At WesternFX, we have reviewed these factors along with several more, to analyze ourselves from your perspective! Excellence in brokerage is what we wish to deliver, and our services have been crafted keeping your needs in mind. Right from equipping you with the latest of trading platforms (MT4, MT5) to guide you through trades easy and hard, you will have our experts by your side throughout! Try a free Forex demo today, and see for yourselves as to why we’re at the top of the brokerage charts! Call us now to know more.
