Forex brokers play an important role in determining the win rate of a trader. If a newbie chooses a reliable at the start of his trading career, he can easily make progress in the trading industry. The Forex market is full of fake people and scammers, so it is essential find out the right and reliable people to work with. Here, we will mention some of the best tips on how to find a good broker.
1. Check for the authenticity
This is a must thing to do before stepping further to examine a broker. There are several regulatory bodies that ensure the authenticity of these people. For example, in the USA,they will become a member of the NFA (National Futures Association), and they will also be registered with the CFTC of the USA (US Commodity Futures Trading Commission) as a Retail Foreign Exchange Dealer. This CFTC is an independent agency, which has been approved by the US government, and it regulates the options and commodity futures industry in the United States. The aim of this agency is to protect participants of the market from fraud.
2. Margin and leverage
Forex traders can get access to a wide range of leverage amounts, which depends on the FX broker too. Some of the remarkable amounts are 200:1 or 50:1. It is like a loan, which is extended to the margin account owners by their broker. For instance, utilizing the 200:1 leverage, an investor with an account of $1,00 can retain a position that is valued at $20,000. It works in favor of every newbie with a lot of winning positions as the possibility to earn profits increases significantly. However, remember that leverage can quickly destroy an entire account of investors because, along with the possible profits, the potential losses have also been magnified.
3. Commission fees or spread
Whenever a beginner enters the platform and starts a new deal, they will have to provide a small number of fees to them, and this is how the Forex brokers mainly earn. This “small amount of fees” is called commission fees or spread. They must be chosen based on this spread or commission fee. The commission fee is also called the difference between the “bid price” and the “ask price”. But note that the spread and commission charged by a broker varies greatly. To get more info visit the official website of Saxo. Elite UK traders prefer to trade with Saxo as they provide a low cost premium trading environment.
4. Hassle-free withdraws and deposits
The broker must ensure that the deposit and withdrawal processes are free from any kind of hassle. Remember that they have no reason to make those processes lengthy and time-consuming. The aim of every reliable broker is to facilitate the trading endeavors of their customers. If you have ever noticed that your broker is delaying the withdrawal process, it would be better to find another broker.
5. User-friendly trading platform
After hiring a broker, take a look at the provided trading platform, which should be user-friendly and easy to understand. Sometimes, these platforms become too messy and are hard to understand. As a result, novices don’t understand what to do and what not to do. A well-designed platform should have the option to include several things, including fundamental indicators, recent news, and technical indicators.
6. Customer service
This is an important part of choosing a reliable one. You have to check their response time and the customer support they provide. If he doesn’t reply to you quickly, then it will be better to leave them because in certain situations, traders may need to deal with micro-pips and when your broker doesn’t reply quickly, investors may lose out on a golden opportunity. Reliable brokers are always ready to provide support with any technical issues investors may face.This is very helpful for their clients.
These are the best six tips on how to choosing a great Forex broker. This article will help people who are really new to this industry.