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Forex trading is an excellent example of where you are potentially your own worst enemy when it comes to your success, but your broker choice is also incredibly important. If you are the kind of individual who endeavours to compromise or search for the path of least resistance, you have two options with regards to forex trading. You can either stay away completely or set yourself extremely strict guidelines that will guarantee you don’t fall for any of the messy trap’s forex brokers toss your direction.
The process of choosing a forex broker is one of the most critical choices you will ever make through your forex profession. This choice, much the same as the trading itself, must be made in a strategic and logical way. Ultimately the aim of selecting a forex broker is to set yourself clear cut guidelines as to what you are looking for in a broker and find the one that best matches your needs and goals.
Unfortunately, that isn’t the manner in which many individuals get things done and as a general rule, an advertisement they saw online directs them to the brokers webpage, and through clever marketing they are convinced that the broker will be appropriate for them.
The following is a list of 5 of the top tips to use when considering which forex broker is right for you:
Everyone loves to be treated well and given clear and helpful information. When you make the decision to buy a car often you will choose the dealership that not only offers a great price but also has provided you with great customer service. Excellent customer service will not only make your Forex Trading journey a more pleasant one, but it will often save you from stressful situations. Imagine your forex trading platform has become frozen and is not responding. If you don’t have an immediate channel for communication, you may not be able to open/close a certain order and therefore could suffer a financial loss on your part. This might be an extreme example, but it doesn’t change the fact that checking your Forex broker’s customer service before opening an account is an important step towards safeguarding your investments in the future. The great thing is verifying customer service could not be easier, jump online and check out whether your broker offers live chat and see how long it takes to respond, also why not give them a call? If they don’t have a phone number or take a long time to respond to emails this could be a warning sign of worse things to come.
Trading platforms are arguably one of the most important choices that you need to make when choosing a broker. Ultimately a trading platform is where you are going to spend most of your time and selecting one that offers you the features and tools you need is very important. Selecting a broker that offers choice of trading platforms can often help you in the long term as you will be able to test out several platforms while Trading and see whether Metatrader 4/5, Ctrader or several of the proprietary trading software’s brokers often use suit your needs. Whatever your needs may be make sure to decide on a platform that is right for you and based on that you can choose a broker, not the other way around.
User Reviews: This is one of the most important types of research you will conduct in your entire forex career. There is no better way to check the quality and reliability of a forex broker than to read the opinions of people who were in your place in the past. Hear what traders are saying, read online reviews about the forex broker. Every broker has pluses and minuses, are this broker’s disadvantages something you are willing to live with? There are many sites online that cover the majority of Forex brokers, the trick is to find the honest and objective ones. A good way to find dishonest and subjective reviewers is when the review has nothing negative to say about the broker.
Trading Features and Specifications: This is of course a very important part of forex trading. What kind of spreads does the broker offer? What pairs do they support? Do they have all the needed trading features included in the platform? Stop losses, Take profits, technical charts, forex news, and simple deposit and withdrawal processes are some things you should look out for. You do not want to open an account with a broker that is not using state of the art technology. If they are not up to date on their trading features and speedy withdrawal processes, this should raise a red flag for you.
Forex Bonuses and Promotions: It is no coincidence that this is last on the list. It is easy to get blinded by promises of free bonuses, no deposit promotions, and trading freebies. Always be careful when using these bonuses and promotions as a selection criterion. If the bonus sounds too good to be true it often is and remember the safety of your money should be first priority over the potential bonus you may receive when transferring money overseas.
The Bottom Line:
If you have confidence in your forex broker choice you will be able to completely focus on your trading strategies and systems. A bit of research before committing to a broker always goes a long way and can even increase your odds of success. Make sure any broker you choose is also regulated within a country with strong financial prudential control as running businesses in these countries requires several checks to be done including liquidity.
Our Broker Choice: One of the brokers we recommend at FX Evolution is Pepperstone. You can Click Here to find out more information.
Author: Thomas Atkinson, co-founder of FX Evolution
FX Evolution has provided free workshops for student organisations within leading industry providers across Australia including Sydney University, Melbourne University, Monash University and other industry organisations.Start Now
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