It is a well known fact that forex or the foreign exchange market is the largest financial market in the world in terms of liquidity and regular turnover. These days the number of online trading brokers is increasing dramatically. Because of growing interest in commodities and currencies, new brokers are constantly popping up. And the task of choosing the best broker from the lot has become a difficult task. But competition only improves the quality of the offering.
Here are some tips that will help you to choose the right broker.
Regulation is the first thing that you must check while selecting a broker. You open yourself up to a potentiality of a lot of problems if you choose to do business with an unregulated broker. That’s not all. Be sure to hire a broker who is regulated in a country where the law, as well as legal protection, is strong. If your broker is unregulated there will be no one to turn to if you have to dispute a trade facilitated by the broker. It is far better to pick a regulated broker.
You should keep capitalisation in mind while selecting a broker for your forex trading business. Check if the broker is well-capitalised or not. There are a lot of brokers who have problems with their capital, making it very risky for you to hold your funds. Your broker should have enough funds to pay you in case any problems come up. By looking up websites of regulatory bodies, you can information on the capitalisation of a broker or a brokerage firm.
3. Trading platforms
There are hundreds of trading platforms and it may be difficult for you to choose the right one. There is no doubt about the fact that the mt4 trading platform is the most popular trading platform. Also, there is the mt5 trading platform that some forex traders prefer. (This one is newer than the mt4.) With the mt4 platform, you can import trading robots and there are hundreds of free indicators available on the internet. As far as platforms go, there are plenty out there, and a lot of firms have their own trading platforms. Almost all brokers now offer demo forex trading accounts which enable you to practice trading with demo money; making trading in a real account progressively easier. Choose a broker who can offer a demo trading platform along with the trading platform of your choice.
4. Customer service
Customer service is of paramount importance when it comes to selecting a broker. There should always be a customer service executive present when you want them. If the broker or brokerage firm is professional enough, they will have several different ways in which you can contact them, such as by live chat, email, phone and other means.
Follow these pointers diligently, do your research, and you will definitely be able to select the right broker - one that is perfectly matched to your trading style.