Over the past ten years, the forex industry has witnessed a considerable increase in the number of broker services being set up. However, not every broker in the market is credible. There are some who choose profit over their customers, whereas others remain committed to offering quality services to their clients. Before choosing a forex broker, there are certain important factors the trader needs to consider. These factors will determine whether the broker will meet your needs or not. Let’s take a look at them below.
While choosing a forex broker, you must ensure that it is regulated. Most traders usually overlook this factor while picking a broker, and it comes to haunt them along the line. A well-regulated broker will always be stable even in the event of a trading loss. Proper regulation makes sure that the broker adheres to the best practices in order to keep your money safe. We recommend that you go for a broker with a neat regulatory record such as the Gain Capital (NYSE: GCAP). With this, you have the assurance that your capital is in safe hands. In most developed countries, forex brokers are better regulated, but the standards differ. Always make sure that the broker displays its proof of regulation before you go ahead to invest.
Another thing to consider when choosing a forex broker is their level of data security. This is important since you will be required to provide some personal data and confidential financial statements while opening an account. For example, copies of your passport, utility bills, and bank account information will be demanded by the broker. You must bear in mind that your data could be stolen if the broker doesn’t have adequate security features.
The Trading Platform
This serves as an investor’s portal to the forex market; therefore, traders should ensure that the platform is user-friendly before choosing a forex broker. It should also feature tools that allow users to easily analyze the market. Another important factor is that it must be easy to take and exit trades on the platform. Some good platforms have a panic button whose function is to close all open trades at once. A haphazard interface increases your susceptibility to making trading mistakes. For instance, you can mistakenly press the sell button when you want to take a long trade and vice versa.
Any business with poor customer service will certainly be unappealing to people, and this applies to brokers. When choosing a forex broker, you should pick one that is available 24/7/365. In this case, when a problem arises, you are sure that it will be sorted out immediately. Every reliable broker must be available to deal with account and technical issues.
Choosing a forex broker could be a tricky task because there are a lot of them in the market with seemingly flashy benefits. This makes it easy for one to fall prey to broker scams. Making out time to research as well as asking for recommendations can help you pick the right one.