If you’re entering into the forex market for the first time, the world’s busiest market, there’s lots you need to understand. It’s not as simple as it may seem, which makes it more challenging to be successful.
A good option for new forex traders is to consider a forex broker. They provide you with additional knowledge and insight to make better decisions than you would likely on your own. The downfall of a forex broker is finding a regulated one in the business to help you and not just merely for the money.
There are many forex brokers available around the world. Which do you choose? Use our list of five qualities of a regulated broker to help make your decision.
Credibility
One of the top qualities of a regulated broker is that they have the credentials to do so. What this means is that your potential broker corresponds to their regulatory bodies. For example, these Australian brokers would follow the Australian Securities and Investment Commission (ASIC). These regulatory authorities have strict guidelines that help keep brokers trustworthy rather than being a scam.
Remember, you’re putting in a significant amount of money into your forex investment. You want a broker that follows the rules and that you trust won’t lose all of your money in one trade. If you can’t find your potential broker under a regulatory body, consider it a red flag that he or she is not regulated.
Trading Platform
Forex trading is typically done on an online platform. So, your forex broker should offer a trading platform as well. You’ll want to check out the platform, as not every platform is the same. Some provide better features for beginner investors, while others aren’t user-friendly and are for more advanced investors.
Take a look at this ECN brokers list as they provide user-friendly platforms that are usually reasonably priced and offer lots of features for the user.
Transaction Costs and Additional Fees
You’ll always have to pay a fee for every trade you enter. Either you’ll pay the commission or the spread. Some brokers have more expensive rates than others, so you’ll want to pay attention to the fees.
The value you get from your broker is crucial. The most expensive broker doesn’t equal the best on the market.
Customer Service
Customer service is always a crucial feature of almost anything you sign up for. There’s a chance you’ll need to utilize this service at some point, so ensure your broker provides adequate customer service.
Easy Withdrawals and Deposits
Your broker shouldn’t have any reason why you can’t withdraw your winnings or deposit more for future trades. They may suggest a deposit number for the best earning potential. However, they shouldn’t withhold any of your profits.
The broker is only there to facilitate the trade with your funds, nothing more. This means withdrawing at any time should be relatively easy. If it’s not, consider that a big red flag that your forex broker isn’t as good as you initially thought.
The above five points aren’t the only qualities of a regulated forex broker, but they are some of the top ones. When in doubt, remember that your broker is there to help with your trades and make you earn money, not the other way around.
