OK…so you’ve done the following…the hard yards so to speak:
- Learnt the Forex markets basics
- Selected your preferred timeframes and currency pairs
- Mastered technical analysis
- Learned/created, back-tested and optimised your strategy
- Created an effective risk management plan
You now feel primed and prepared to enter and take on the markets.
So what next?
There’s one very important step you need to take before you jump in…
FINDING THE RIGHT FOREX BROKER.
Before going on let me briefly explain what exactly is a Forex broker.
Put simply, a Forex broker is a financial company that connects traders to a platform that allows them to buy and sell currency pairs. They are the backbone of the forex money-making market.
Currently there are approximately 270 Forex brokers from all around the world so choosing one that is the perfect match for your trading style and goals can be challenging.
So to help you, here are some things you must pay attention to before making your choice:
1. Regulated Compliance
This is one of the most important things to look out for as it provides protection for your money & investments from fraud and misconduct. In the UK, brokers are regulated by the Financial Conduct Authority (FCA) which means they must follow strict financial rules and regulations and are held to high standards of conduct
2. Consider the Costs
Costs of broker services comprise of spreads (difference between the bid and ask prices) and commissions (a a fee charged by the broker).
Spreads can vary greatly from one broker to next, so before opening an account make sure you compare rates, because the lower the spread the less you have to pay to enter a trade
Similar to spreads, commissions can also vary dependent on what broker you use but the cost is usually much less than spreads. Some brokers offer commission-free trading so it’s well worth finding this out beforehand.
3. Payment Methods They Offer
The majority of brokers allow clients to deposit and withdraw funds by credit and debit cards as well as a bank transfer, Other also offer methods such as Paypal and Skrill. It’s important the broker you choose offers payment methods that are suitable for you.
4. The Trading Platform
This is a key component of every trading strategy. When choosing a broker its important the platform they offer is user-friendly and has all the necessary tools and features.
5. Demo Accounts
Brokers that offer demo accounts is another important consideration as that then allows you to test and trial their platform to see if it’s a good fit for you and your trading style before committing to opening an account.
6. Education
Many reputable brokers offer extensive education resources that can help both the novice and experienced trader. These resources can include such things as eBooks, webinars, online courses and trading platform tutorials.
7. Customer Service
How good is their customer service? Reputable and established Forex brokers will provide 24/5 customer support with contact methods that include email, phone and live chat making it quick and easy for clients to get in touch. Customer support is also vital for all beginner traders.
Finding quick and effective solutions to things such as technical issues or account funding queries are very important for anyone that’s new to Forex trading.
Hope this info has been of help in highlighting main points that distinguish the best brokers to the not so good ones.
Take your time before making the final decision as a reliable broker helps you to avoid unnecessary challenges and risks on your journey to becoming a successful and profitable trader.
Forex Brokers 2022
With so many Forex brokers to choose from, here’s a complete list for 2022 including the year they were launched, their status and regulation, to help you with this important step.
