How to choose the best Forex broker is the question that any new Forex trader asking. The following post summarize the parameters you need to check in order to choose the best Forex trading broker.
Check That the Broker is authorized and regulated – reliable broker must be authorized and regulated by leading regulation bodies like: NFA, FSA and CFTC. choosing regulated broker means that
The broker must have advanced risk management tools and traders’ money is protected due to the Negative balance protection /Client money protection.
Easy to use trading platform – check that the broker suggesting easy to use forex trading platform. The platform should be simple and intuitive. The following tips will help you choosing Good Forex trading platform
Support and Customer service – Support is highly important and key factor when choosing Forex broker. It’s important to check broker support before trading on real money. My advice is to open demo account and ask the support few questions in order to check their response time and their overall quality of support.
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Check the leverage options – the rule is simple – The higher the leverage is, the profit potential is higher. For example: leverage 1:30 means that you can trade on $30,000 worth while maintaining only $300 in your account. It’s important to understand that when the leverage is higher the potential to lose is also increasing.
Demo Account – leading brokers suggesting free demo account. It’s a must to open a demo account and trade on virtual money in order to check the broker platform and support.
Withdrawals and Deposits – check the broker policies especially regarding to withdrawals. Pay attention to the fees for bank or wire transfers and if you need to wait long time to withdraw your funds. I personally like brokers that allowing PayPal (for deposits and withdrawals) I think it’s the most comfortable way.
Summary – Choosing the right Forex broker is an important step. Don’t be lazy, do deep research, open a demo account on few brokers; check the trading platform and support (do all the checks while trading on virtual money!).
On the bottom line – Choose broker that will provide you the best environment to succeed (platform, tools, support…) and of course broker that you can trust on.