Forex is the world largest financial market. An average of 4.5 trillion dollars is traded each day. Unfortunately, unlike other financial markets such as stock trading that have a central marketplace, traders who wish to trade on the forex market have to choose a forex broker to conduct their trading activities.
Unlike the past where regulated forex brokers were few, today many brokers claim to offer quality services to traders. Unfortunately, not all brokers are genuine. Some are only interested to make huge profits at the expense of the traders. The broker that you choose to work with will determine your overall success in forex trading. You, therefore, need to be careful when choosing one. Below are tips for choosing the best currency trading broker.
- Consider Security
Forex brokers usually hold crucial information about their clients. Before you start trading, the forex broker will require you to submit both your financial and personal data. For instance, they will require you to submit your bank account details, your credit card number as well as a copy of your passport. These are all very crucial information that can be used against you if they fall into the wrong hands. That is why it is very important to consider the security measure that the broker has put in place to protect sensitive personal information from being stolen. Inquire to know the security and encryption measures that the brokerage firm has put in place to guarantee the safety of your data. Only choose a broker that has put concrete security measures to protect the trader’s personal information.
- Read reviews and ratings
Before you make your final decision, read reviews to know what current and past traders who have used the services of that particular broker are saying. Sometimes reading customer reviews can confuse you more because you can read some very good reviews and others that are very nasty. It is very difficult to find a broker that has 100% positive reviews. If a broker has 100% positive reviews then chances are that the reviews are fake. Genuine brokers have positive and negative reviews. Don’t just read reviews that the broker has placed on the website. Most of them only post positive reviews. Instead, visit reputable review sites to get the real picture of what other traders are saying about that broker. If the broker has many positive reviews, then chances are that they are reliable and trustworthy. On the other hand, if traders are not happy with the brokers, then you should avoid that particular broker. Only choose a broker who enjoys good reviews and rating from traders.
- Consider the brokers trading platform
Before you make your final decision, analyze the trading platform that the broker offers to see if it is efficient and user-friendly. Remember that this is where you will conduct all your trades. You, therefore, need to choose a broker who offers a trading platform that is fast and easy to use. You don’t want to choose a broker who offers trading that is extremely slow or experience downtime frequently.
- Quality of customer service
No brokerage firm is perfect. When working with a particular broker, chances are that you will contact the customer care at some point. It is therefore very important to choose a broker who offers quality customer service. The best way to know if the broker offers quality customer care service is by contacting them to see how fast and professional, they respond. Only choose a broker that offers quality and satisfactory customer service to traders.
- Ease of withdrawal and deposit
Consider how easy the broker allows you to withdraw and deposit funds. Some brokers make it hard for traders to deposit and withdraw funds while others make it easy. Choose a broker who makes the process easy and stress-free. There is no need to choose a broker who gives you a hard time withdrawing profits that you have worked so hard to earn.
- Consider spreads, commission, and fees
Trading costs have a huge impact on your profits. So, before you make your final decision, it is important to consider commission, fees and spreads that the broker charges. Spreads are the main source of income for brokers. Spread can either be floating or fixed. Choose a broker that offer spreads that suits your trading needs. Some brokers also charge a commission for every successful trade while others don’t. Some also charge miscellaneous fees such as deposit and withdrawal fee, account inactivity fee or wire transfer fee. Choose a broker who offers the best deal, as far is service cost is concerned.