The Primary Criteria for Choosing a Forex Broker
A Forex Broker can be a person or a firm that provides a platform to the traders to buy and sell foreign currencies, to make your trade successful it is necessary to choose the right Broker.
In this article, I am telling you the primary criteria to choose the right Forex Broker.
1. Regulatory Elements
The first sign of a professional broker in compliance with regulations means registered with National Futures Associations (NFA) and registered with US Commodity Future Trading Commission (CFTC) as a Future Commission Merchant & Retail Foreign Exchange Dealer.
An attractive & Professional looking website does not mean that they are registered, but their registration is shown on their website by the registration numbers of National Future Associations and Commodity Future Trading Commission, every country outside the USA has their own regulatory body due to their potential concerns, so a trading account only be opened with a registered and regulated broker.
2. Accounts Detail
A Forex Broker has different account detail to provide the trading platform to the trader. All brokers have their own commission and spread structure, and they charge the traders accordingly, as some brokers are charging, if a broker is charging commission so may charge some percentage according to the spread, the spread is the difference between the ask and the bid price of a forex trade pair. But sometimes forex brokers are advertising that they will not charge any commission but they just play with the trader, instead of commission they charge even more spread than the commission that otherwise they would have been charged. The spread that the brokers charge could be 5 pips or it could be variable according to the forex market volatility. It is better to take a commission-based structure then spread because the spread can be more confusing for a trader, the wider the spread the greater the loss in the trade.
3. Customer Service
The Customer service must be guaranteed 24/7 by the broker as the forex market is open 24/7 so at any time the trader may want to sell and buy the currency, and another concern is the ease to connect with a live person rather than a time-specific a complex structured and frustrating. To verify the customer service and availability if a broker a quick call is the best option to know it.
Along with these a trading volume information is necessary to ask, because the greater experience they have a good pricing strategy they can offer and the more trade option they know.
4. Trading Platform
A trading platform from which the trade is executed, the platform must be user-friendly and the software used in the overall that must be easy to use and pleasing.
The platform must have easy to trade buy and sell buttons so that the trader may use easily without waiting or without any complications.
Many brokers are using different techniques and fundamentals tools to analyze and execute the trade so the trader must be sure about the easiness of all that.
5. Deposit and Withdrawal
A Good Forex Market Broker allows you to easily deposit and withdraw your investment and the profit without any hassle
The Broker must make sure the withdrawal and deposit process must be smooth, easy and speedy.
There are other things to consider to choose a broker account such as order entry types, customizations options, automation trading options and trading alerts, and the most important that many brokers are offering the demo account so that the trader can practice the trade prior to opening a real-time account with a broker to start investing money.