The growing popularity of retail forex trading has led to a rise in the number of forex brokers. Most brokers aim to offer high quality services to their clients. However, some brokers are less trustworthy. It’s important that you choose a good, reliable forex broker. That’s why we’ve put together a list of things for you to look out for when deciding which broker to trade with.
1 – Compliance With Regulations
It’s important to check whether a Forex broker is regulated by the relevant regulatory bodies. Regulatory bodies ensure that brokers conduct their activities as per the required standards. The regulatory bodies also make sure that brokers maintain their minimum capital requirement. This ensures your interests are protected. Some of the better regulatory bodies include;
- Nigeria – Securities and Exchange Commission (SEC Nigeria).
- United Kingdom – Financial Conduct Authority (FCA).
- Australia – Australian Securities and Investment Commission (ASIC).
2 – Choice of Trading Platform
A trading platform connects the Forex trader to the market. It allows traders to enter and exit the market at their convenience. A well-designed platform should be easy to use, have a variety of technical analysis tools as well as a news feed. In addition to that, the provision of a demo account in the trading platform adds to the quality of service by the broker
3 – Trade Execution Speed
Having a broker who fills your orders at the best available price is of great importance. For example, if you buy GBP/USD at 1.3220, the order should be filled at that price under normal market conditions. Forex brokers will perform this function more effectively when they have many liquidity providers, and you can normally find this out by checking their website or asking their Support team. So make sure to take this into account when choosing a Forex broker.
4 – Choice of Payment Methods
A reliable Forex broker allows clients to make deposits and withdrawals smoothly without difficulties. Moreover, the brokers should have several ways to deposit and withdraw funds. These ways can include and are and not limited to credit cards, wire transfers, Skrill, and Neteller. The more methods they provide you with, the more likely they are to be a professional company that will pay out what you’ve earned.
5 – Available Financial Instruments
The financial instruments traded in the market are currency pairs, indices, commodities, metals, options, and cryptocurrencies among others. Brokerage firms that provide many instruments to trade with are more popular with traders then those with less choice, as it allows traders to trade with the instruments they prefer, and better brokers make the effort to provide more choice to clients.
6 – Customer Service
Considering the forex market is active throughout the day (and week), an efficient Forex broker should ensure 24-hour customer support availability. The traders may get assistance through live chats, emails or via telephone. It is important for brokers to have competent staff who can solve the clients’ issues appropriately and without delay.
7 – Availability of Education Materials
Most reputable brokers provide educational resources to help the traders improve their knowledge of financial markets. These resources are and not limited to e-books, articles, webinars, and seminars. When choosing a Forex broker make sure you pick one whose education material is of continuous high quality to help you learn about trading and how to minimise risk and maximise profit.
Doing plenty research before choosing a forex broker and investing can save you time and energy. Read through their website and see what exactly they offer. You can also find online broker reviews to give you a better insight. In addition, exploring through forums help you learn from the experiences of other traders who have already signed up with them. Take your time and make a decision that’s right for you!