Selecting right broker – practical tips
Among many factors contributing to your success on Forex, the choice of a broker should be your priority. Do you want to know how to choose the best forex broker? Here are all the essential points that you must take into account when making your choice.
You must first make sure that the company is operating in compliance with all regulations imposed by a serious regulatory authority like the FCA in the UK.
Every country represents the jurisdiction disposing of the financial institution that ensures the protection of trader’s funds, security of transactions, and that the brokers are operating respecting the best business practices.
Choose the most suitable platform for you, which meets your needs and trading experience. If you are a novice, avoid brokers who offer platforms that are difficult to navigate and user-unfriendly. You can make a test via the demo version of the broker at any time.
Choose a broker according to the spreads. However, beware of other costs that are not necessarily clearly announced by the broker, such as commission fees, inactivity fees, etc. In general, all trustworthy brokerage companies are transparent to this point.
Your task should be to carefully read the terms and conditions of the trading process and discuss upfront all ambiguities with the broker’s representative or future account manager.
It is preferable to select a broker that offers diversity in the markets and different trading tools, products, and instruments. As your trading experience grows, you might find it suitable to diversify your investment in various financial markets like crypto, derivatives, indices, and so on. And if you can do it in one place, the better for overall trading experience. You can rely on broker review when searching for the best trading intermediary with top-notch trading conditions.
Due to the volatility, frequent and sometimes unexpected market events could compromise the quality of order execution. It results in slippage, which means a discrepancy between the order bid/ask price and the order execution. A good broker is a broker who allows you to have your orders executed quickly, no matter the circumstances.
You must choose a broker that allows you to choose and implement the strategy without any limit. Although using advanced and more complex strategies is particularly important to seasoned traders, it’s always good to have the freedom of choice. At least, as a beginner, you might want to experiment with strategies on your demo account.
A good broker should have several types of accounts offered to the clients with different offers and advantages, which will allow you to choose the one that suits you the most, among others:
A demo account
a standard account
A pro account or VIP account depending on the broker
The broker must offer you total security for your funds. To be sure of this, check if the latter has segregated accounts, ensuring that your trading funds are not drawn on anything other than trading purposes. However, when it comes to this point, all regulated brokers have already proved that security is of their first priorities.
Choosing a good broker also depends on the latter’s customer service quality, which must be responsive and allow you to have a quick and efficient response.
We recommend testing the customer service of the brokers you want before starting the collaboration.
The best broker is also the one who offers traders, especially beginners, a complete and free training offer with videos, articles, ebooks, or even mentorship to learn and master the basics of forex trading.