Being a trader in the Forex market, you must be receiving lots of overwhelming and attractive advertisements from several Forex brokers. But while choosing the best forex broker you must have an understanding of the type of investor you are and your goals behind investing in a particular currency. Apart from having an insight into your interest, you must take into account the following factors while choosing The Best Forex Broker-:
1. Legislative Submissiveness
Firstly, check if the broker is regulated by an authentic regulatory agency. Dealing with a regulated broker assures you that the broker follows the guidelines imposed by the regulatory authority. Dealing with a regulated broker will also give you conviction regarding fund protection and guarantee that the broker supports uncompromising standards.
2. Trading Platforms & Software
While choosing a forex broker you need to check if is providing you with a reliable trading platform. Since a trading platform is your gateway to the market, it must be efficient enough to avoid the usual freezing or system crashes. An ideal trading platform must support one-click operation, easy accessibility & navigation, efficient order placing or promptly closing a trade, a wide range of risk management tools, and technical indicators.
3. Types of Trading Accounts
The availability of various account types is always an added advantage when choosing a forex broker. Every trader has unique requirements that differ from the other traders, and if a broker provides a wide range of account types, then there are more chances that the broker efficiently caters to the varied financial needs, abilities, and aspirations of different traders. Brokers need to understand that giving traders the power of choice will help them in the long run since traders prefer freedom over limitations.
Features of Trading Account:
While choosing a forex broker look out for the various features being offered by the trading platform. Compare these account features offered by various brokers and choose the best one:
- Leverage & Margin– Check the margin call requirements of the broker and the rules applied for margin. Look out for the leverage level that best suits your trading needs and skills.
- Commission & Spreads– Check if the forex broker charges a fixed or a floating spread. A minimum spread will ensure you the maximum profit.
- Initial Deposit– Check if the broker has specified any minimum requirement for initial deposits.
- Deposits & Withdrawal– Check on the various funding methods offered by the broker and the fees applicable to each method. Also, check if there are any withdrawal limits.
4. Nature of Client Support
Customer support is an essential service offered by brokers. Several brokers offer 24/7 assistance to meet the needs of their traders. Apart from this, multiple language support is an indicator of how globally active the broker is and if the company is suitable for a multilingual trading community. Other points that need to be considered are:
- Does the broker website clearly describe the various issues that might occur during trading?
- How efficiently the problems are resolved and eliminated?
- What various modes (phone, live chat, email) are offered by the broker for communication?
5. Trading Cost
Being a high-volume trader in the forex market you should also take into account the amount of commission and fees that a forex broker charges. You must choose a broker who is offering quality services at an affordable price. Trading costs in the forex market can be high and may affect your overall profitability as a trader. So, don’t rush and take your time while choosing the best forex broker.
6. Trade Execution
To ensure your trades are filled at the best market rates and on time, choose a forex broker who applies effective trade execution practices. You can choose from the following two types of brokers:
- Dealing Desk Brokers: This type of broker hedges the trade themselves or places the clients against each other.
- No Dealing Desk Brokers: NDD brokers pass the trade with the interbank market (external liquidity providers) and eliminate the need for intermediaries. STP, ECN & DMA brokers offer NDD execution.
Since a large number of forex brokers are present in the market, it becomes essential on the part of the trader to choose the most reliable broker who is offering all the features and services you are looking for. Dedicate sufficient time to choose the ideal broker that fulfills your trading requirement.
