How to Choose a good “FOREX” Broker: 5 Things to consider when choosing a broker
As a trader, you do not have direct access to the market you need the services of a broker to provide that access to you.
So, what do I mean by a broker? A broker is simply the middle man between you as a trader and the markets.
Although they carry out other functions their main job is to help you place a trade in the market.
Choosing a broker is something most new traders take lightly no matter the markets or type of instrument they want to trade i.e. CFDs, Options, Binary, etc.
Having a bad broker can cost you a lot. Because you are new you may not understand somethings probably because you have not yet experienced them in your trading lifetime.
Some of these so-called retail brokers especially forex and binary guys are not safe and most inspecting beginning retail traders will not know how to tell the ones that have their best interest and the once that is going to be more favorable to their trading.
Today is your lucky day is you far to such category.
Below are 5 things you must consider before choosing a broker.
This is one very important thing you must know about your broker. You should know if they are regulated and where they claim to be regulated. If they are not regulated please avoid such brokers. They can use your money to carry out other unlawful activities at your own expense if things go bad.
2- Capital Protection:
Another important thing you want to know about is the protection of your funds. Will your money be well guarded by the broker. Is your fund in a separate account where the broker can’t use it to carry out their own business expenses? Also, you want to know in case the broker went “broke” who protects your money. Is there any form of deposit insurance and if so what’s the deal?
3- Customer Support:
One of the qualities of any good business is good customer support and it is no different in the brokerage industry. You want a broker that will always be there when you need their help if you find yourself in any difficulty. So, make sure the broker you choose has really good customer support.
4- Execution platform:
Make sure the broker you choose has a great and robust trade execution platform that is easy to use. As a trader you want an easy to use execution platform that the user interface is very customer and user-friendly. If they have MT4 better, MT4 is pretty straight forward for beginner retail trader to easily understand.
5- Range of trading instrument:
This is very important as you don’t want a broker that does not give you access to a wide range of asset classes to trade. The more assets that are available to trade with your broker the better. Some brokers offer just forex pairs, others just crypto. What you want is where you can trade as much asset class on one platform as much as possible.
Now you know these things if you have a broker already examine them if they meet these standards I just discussed. However, if you are really new and you don’t have a broker yet, I’ll recommend reaching out to brokers and knowing their position on what I just shared and then do some comparison on your own.
I hope you have learned something valuable from this post today. I wish you all the best in Jesus Christ’s name.
ABOUT THE WRITER
My name is Joshua Eriaborosan OFOMAJA (JEO), I solve money and Marketing/Business problems for individuals and businesses.