The foreign exchange market is the world’s largest financial market. This fact should be enough to put things into perspective especially if you want to start investing in it. With a multitude of Forex brokers worldwide, finding the right one can be tricky.
To make things easier for you, here are four things to consider in choosing your Forex broker:
The first criterion on your list should be the security of your account. The best way to verify this is to check if they are regulated by a financial authority. In the U.S., a broker firm should be a member of the National Futures Association (NFA). To check, visit the NFA official website and look for their members. The NFA also displays any disciplinary actions against against a broker to give you an insight into its performance.
Other well-known regulatory bodies include the UK’s Financial Conduct Authority, and Australia’s Australian Securities and Investments Commission.
2. Account Type
Before looking at the account details of a Forex broker, you must first create a plan for your investment. How much would you like to invest in? What is your goal? Knowing these could go a long way when looking at the different portfolio and account details offered by a broker.
You should also consider the procedures they have in place. Look for their spreads and commissions, as well as the reliability of their services.
3. Customer Service
The Forex market operates 24 hours. This means that your broker should always be a call or chat away. A quick response time can define a gain or loss. One way to determine this on the onset is by trying to call a Forex broker through their designated customer service hotline. If it takes them more than 15 minutes to answer, then it’s best to look for another one.
4. Trading Platform
A broker’s trading platform dictates the efficiency of your trading experience. It should be user-friendly and easy to navigate. By this, we mean that all buttons are clear and function well. Usually, a free demo of a trading platform is available so make the most out of it before handing out any money.
A trustworthy professional Forex broker should be secured, competitive, and efficient. Take your time in reviewing all factors that constitute the best broker out there. Remember, you need a broker that allows you to grow your money according to the goals you want to achieve.
Also read: The Problem with Most Forex Brokers