Learn How to Choose the Best Forex Broker

Every individual interested in starting trading forex has one question in their mind: How do I profit fast? While everyone will tell you that becoming successful in forex trading requires patience, a lot of practice, keeping an open mind and learning every day, beginner traders tend to focus on profits.

Well, whether you are in for the excitement of making money or for the long term, one of the most important things to have in mind, no matter your goals, is finding the right broker. The best forex broker for you is the one that will support you, empower you and offer all the resources to get you where you want to be.

Finding the best forex broker for you is easier said than done though. Even professional traders still struggle to settle with one broker and continue to search till they find the broker that has everything they need.

With forex trading becoming so popular and with so many forex broker out there, you are spoiled for choice. However, not all brokers are the same, and some have products or resources that others don’t have. The question here is to know what you want and find a suitable broker that covers all your needs.

But you may be asking what factors you should consider when choosing a forex broker. Well depending on your priorities and goals, you should pick a broker that will meet your requirements. You may be interested in education or you want to ensure that your funds are extra secure. Many professional traders prioritise such things as low trading costs, great execution and superb platforms. All these depend on what you are looking for. However, there are some key considerations that every trader needs to take into account.

Choose the Best Forex Broker

Trust and reliability

Choosing a broker who is trusted by millions and has a history of being reliable and fair is important. Always do your research and read through the reviews to form a more clear and realistic image of a broker. A reliable broker is also a broker who has spent considerable time and funds in creating a finished product and a solid website, so clients can find everything they want. A great forex broker is proud to showcase all their products and services and traders will readily find everything they want. If you are new, you may want to know the broker’s terms and conditions, or their policies. These should be available online for you to read.

Another sign of a trusted and reliable broker is the testimonials of their actual clients and what traders who have used them say about them. Although many brokers may attract negative comments from time to time, the overall idea should be about a broker who is responsible, helpful and friendly. Traders who actually used the broker will focus on their specific platforms and talk about their products and you can form a clear idea of how their products are perceived.

Regulation

The best brokers are regulated by well-known regulatory bodies in different countries where the brokers operate. Always check the institutions and how these brokers are regulated and to what extent. Not all legal bodies are the same and not all brokers provide the same protection. Again, this is up to you and what you want from your broker.

Low trading costs

If you want to enhance your potential of making more profits, you should limit your costs including commission, spreads and trading fees, such as bank card fees from deposits and withdrawals. Ensure you understand how a broker’s deposits and withdrawals work and research reviews to determine whether any traders have had issues with payments.

Some brokers may keep their clients’ funds in segregated accounts and others may not. You should clarify everything from the start so you don’t face any problems later. When it comes to your hard-earned money, it is better to take your time at the start and learn everything about how the broker is processing payments and know that you are in safe hands.

Multi-asset brokers

A forex broker may provide access to trading forex, but you should ensure you can trade other markets if you wish to. Brokers are not just forex brokers but tend to be multi-asset brokers, offering multiple assets beyond currencies, including commodities, metals, indices, stocks, futures, and even cryptocurrencies.

Multi-asset brokers usually provide access to these markets via Contracts for Difference (CFDs). This is a much more cost-effective way to trade these days, as you can commit a smaller amount of capital and speculate on the value of the asset going up or down. CFDs liberate traditional investors from having to invest big amounts of money and allow modern traders to participate in the markets with less initial capital.

A wide variety of currencies

If you are interested in specific currency pairs make sure that you find a broker that offers exactly those pairs. You should also ensure that the broker offers the currency pairs you wish to trade with excellent trading conditions. Maybe their account types have no commission or their spreads on a particular pair are too wide or too narrow. Pick a broker that offers competitive spreads since this will translate to bigger or smaller costs.

Additional Features: Trading platforms, Mobile Apps, Copytrading, and VPS

Many brokers provide various different options for platforms. They may have their own in-house developed trading app, or provide their own desktop or mobile trading platforms. Ensure that they have leading trading platforms such as the MT4 and MT5 so you can trade both on your desktop and mobile device. Always look for brokers that offer reliable and secure trading platforms with additional features such as the use of Expert Advisors (EAs).

Educational Resources and Trading Central

Many brokers invest in education and provide their traders with their own in-house research and analysis, as well as other material such as webinars and podcasts. More exclusive services may include access to independent analysis and tools from Trading Central. Again, do your research and ensure your broker offers the support to get you to the next level and develop your trading skills. Remember, always take your time and research all the possible brokers. Keep an open mind and explore their demo accounts to get a feel of their platforms. The right broker is out there waiting for you. Happy trading.

Disclaimer:

This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked, in this communication.