How to choose the right broker!
The forex market is very competitive and finding a reliable forex broker that suits your needs is not that easy to find and you might find yourself, having to sift through all the available brokers..
Choosing which forex broker to trade with can be a very overwhelming task especially if you don’t know what you should be looking for.
In order to make it easier for you we selected some points that we think are beneficial in choosing the right broker.
Security and Regulation:
The first and foremost characteristic that a good broker must have is a high level of security. After all, you’re not going to hand over thousands of dollars to a person who simply claims he’s legit, right?
So there are Regulated or Non-Regulated: Regulation is something that has to be given proper attention while choosing a reliable broker for performing forex trading. There are several problems associated with the brokers who are unregulated. Any problems you get during the funds deposit or the withdrawals you cannot seek any legal points for help and in turn you cannot file any complaints with unregulated brokers.
Since for us it is one of the most important criteria in choosing the right broker. Top5broker.com has only listed regulated brokers in order to keep you safe from the beginning of one your choices in finding the right broker for you!
There several types of regulations in different countries, you can see in our broker list under the column regulation where the broker is registered
No matter what kind of currency trader you are, like it or not, you will always be subject to transaction costs.
Every single time you enter a trade, you will have to pay for either the spread or a commission so it is only natural to look for the most affordable and cheapest rates.
Sometimes you may need to sacrifice low transaction for a more reliable broker.
Make sure you know if you need tight spreads for your type of trading, and then review your available options. It’s all about finding the correct balance between security and low transaction costs.
Deposit and Withdrawal:
Good Forex brokers will allow you to deposit funds and withdraw your earnings with no problems. Some encounters you could have in the beginning is to upload documents such as your ID and a last bill not older than 3 month like electricity etc. in order to verify you.
That can be a little annoying in the beginning, but it is in order to protect you and that there is no fraud made in your name.
Brokers really have no reason to make it hard for you to withdraw your profits because the only reason they hold your funds is to facilitate trading.
Your broker only holds your money to make trading easier so there is no reason for you to have a hard time getting the profits you have earned. Your broker should make sure that the withdrawal process is speedy and smooth.
In online forex trading, most trading activity happens through the brokers trading platform. This means that the trading platform of your broker must be user-friendly and stable.
When looking for a broker, always check what its trading platform has to offer.
How about easy-to-use technical and charting tools? Does it present you with all the information you will need to trade properly?
In our opinion brokers that offer Metatrader platform have a plus point of a neutral trading platform.
Brokers aren’t perfect, and therefore you should pick a broker that you could easily contact when you face some issues/ problems.
A broker that helps or solve technical issues or handling questions after opening a account is a very important point.
Brokers may be kind and helpful during the account opening process, but have a terrible support!
There is no best Forex broker in the world, but If you are confident with your Forex broker, you will be capable of devoting considerably more time and precious attention to analysis and developing various strategies. A check up prior to committing to a specific broker can might let you start trading a lot easier and helps a trader's odds of being successful in the competitive foreign exchange market.
Customer service is one of the important points to be taken care while choosing the broker. After all the account has been setup and when customer needs to contact the broker through toll free number, email, live chat etc., they have to be reachable and respond the customer queries gently. There are also many other forex brokers who rolls out offers, promotional services, rebates and other bonuses. They can be useful for a trader in many ways.
After understanding all the above mentioned points, some of you may feel that no good broker can have all the features. Yes, But you should be able to think on what the broker has to have mandatory for your needs, so that you don’t fall in the hands of the wrong broker for you, and drain your hard earned investments.