Where to look for the best Forex broker?
The internet is flooded with several lists claiming to show top rated Forex brokers. But the Forex brokers you find in those lists are not all top rated. In those lists, you may sometimes find some brokers that have been accused of high spreads. It is not easy to choose the best broker among the list of all famous Forex trading companies in 2018 year. The Forex market is so crowded that the thought of making that choice among so many alternatives can be overwhelming. However, if you consider the items on the list below, you will be able to land in safe hands.
Level of Security
You should look out for the level of security you can find in the Forex broker you are about to engage. Since you are going to hand over thousands of dollars to him, you want to be sure he is genuine. To check the legitimacy of a Forex broker, make sure he is a member of at least one of the several regulatory bodies in the country where you live. Some of these regulatory bodies include the National Futures Association (NFA), Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC) and others. If the FXbroker you are considering for hire does not belong to any of these regulatory bodies, it is not a good sign for security.
2. Costs of Transaction
All currency traders no matter what kind they are incur costs in the course of their transactions. These costs are incurred in each transaction and may be either a commission or the spread. Since this is inevitable, investors should look for the cheapest and most convenient rates. However, do not be so concerned about getting low transaction costs that you settle for a less reliable Forex broker.
3. Ease of Deposit and Withdrawal
You definitely want to have easy access to your account to make both deposits and withdrawals. You should choose a Forex broker who can give you this easy access. A broker should hold your funds only for the purpose of executing trades. There should be no reason for you to have any difficulty getting the profits your investment has earned.
4. User-friendly Trading Platform
Most Forex trading activity occurs through the Forex broker’s online platform. It is self-evident that you should choose a broker who has an easy-to-use and reliable interface. Make sure you evaluate ahead of time what kind of trading platform it uses for its trades. A user-friendly platform should offer free news feed, easy technical and charting tools. It should also furnish you with all the relevant information you need to make informed trade decisions.
Your Forex broker should compulsorily fill you at the best possible price for your orders. Provided that there is normal liquidity, no significant press releases or impromptu events, your FX broker should never fail to fill you at, or at least very close to, the market price displayed when you choose to buy or sell. Suppose, for example, that your internet connection is stable. Once you click to buy any currency pair, you should get filled at that very price or within micro-pips of it. It is important that your orders get filled very speedily. Even a couple of seemingly minor differences in price can make it quite difficult for you to win that trade.
6. Customer Service
Since it is likely that issues may arise in your interaction with your broker, it is important for you to choose a Forex company whom you can easily contact to settle issues that arise. The quality of a broker is not just in his ability to execute trades. His ability to handle technical support or deal with account issues is equally important. Some Forex brokers may appear to be kind and understanding during the account opening procedure but once you are in, they can begin to manifest horrible customer service.