Working with Forex Brokers; Everything You Need To Know
Setting the first foot in the foreign exchange market can be challenging, this is especially true for novices or people who have just had the thought of giving forex trading a trial. You can solve the complexity of trading in forex by choosing to work with a forex broker.
Who Is A Forex Broker?
Forex brokers are dealers in the foreign exchange market. They help by creating online platforms where traders can place their forex trades. Choosing to trade with a forex broker is a decision that poses a number risks to your investment. That aside, finding or even choosing the right forex broker can be a perplexing task. Luckily for you, this article sheds light on some of the crucial things you must consider before choosing the forex broker of choice.
Things to Consider When Choosing a Forex Broker
The Security of Your Investment
Claiming legitimacy does not guarantee the security of your money. In any case, there are already many forex brokers who claim legitimacy even if it still remains questionable. But how can one assess the credibility of a forex broker? The operations of different brokers around the world are monitored by different regulatory agencies.
It is these regulatory bodies that help sift out the credible ones from the ones that are fraudulent. For instance, in the USA, it is the work of the Commodity Futures Trading Commission commonly known as CFTC, in conjunction with National Futures Association (NFA). In the UK it is the role of Prudential Regulation Authority and Financial Conduct Authority. Before investing your hard earned cash with a broker, make sure that the relevant authority in your country regulates the broker of choice. Regulatory bodies normally issue a license to all compliant forex brokers.
The Convenience of Withdrawing/Depositing Funds
A good forex trading broker should provide in their platform a means of depositing funds or withdrawing your earnings without stress. Since you cannot trade without depositing funds; accessing your profits should be easy and convenient. Ideally, the only reason that a broker should hold your money is to enable you to trade; therefore, if you have already made some profit, withdrawing should be hassle-free; smooth and speedy.
What Are The Trading Costs?
As a forex trader, every time you choose to trade, then you have to pay a certain fee. These fees are a must-pay irrespective of the currency pair you choose to trade in. There are different charges like spreads or commissions. Naturally, you will want to go for a forex broker with the most affordable rates; however, you may need to consider other factors like credibility which determines the safety of your investment.
How User-Friendly Is The Trading Platform?
It is always advisable to look-through a forex brokers trading platform before making an investment. The best platform should be easy to use, maneuver and with guiding aides such as the chat provision, news feed and so on. Comprehensive forex trading platforms like juno market are designed in a way that easily provides you with all you need. Another thing to look out for is the stability; no one wants to make an investment that keeps on shutting down whenever you are trying to place a trade.
Competent Customer Care
Many forex brokers are said to be very competent with customer care response and support during the account creation process but do not care at all after the process is done. Stay away from such; make sure you go for brokers with a customer service response line you can reach whenever you have a problem. This is important because you may be faced with technical issues that may need an expert’s attention. One can find out about a company’s customer support by reading through clients reviews.
Which Are The Products Available?
It would be very unfortunate to realize that you have placed your investment with a forex broker who does not offer the currency combination that you would like to trade in. to avoid this, always make sure that what a forex broker has to offer matches your trade/investment interests.
While all the above features are important to consider before choosing a forex broker, it is important that forex traders individually assess the broker’s overall provisions before choosing the one with the perfect services to match the needs.