You are going to have to do it sooner or later if you plan to become part of this crazy game we call Forex trading. You can’t do it without a broker and there are so many to choose from, how will you know you have the right one? Well, we’ve told you before that there are going to be a lot of variables at play here. First and foremost will be the trading style you adopt. Plus, you will likely alter that the longer you spend trading Forex. Another factor is what type of broker you will require for the types of trades you intend to make. Then there are the other things to consider.
Let’s look at some of those.
1 – Security
So, although it may be a safe assumption to make that every broker has some security measures in place, you still have to ask. Don’t worry, brokers get asked this a lot and are usually prepared to produce some paperwork to help explain their security. There are regulatory agencies that you can reference when doing a background check on a broker or two. Be sure to use the correct agency for the country the broker calls home.
2 – The Cost of Doing Business
They may sting a little at times but transaction fees are a way of life in the world of a Forex broker. You will be paying either a spread or commission rate on each and every trade you make so be prepared. However, brokers may compete against each other for your business. This is when things get really interesting. Brokers can offer cut rates and often do.
3 – Deposit/Withdrawal
A good Forex broker will make the depositing into your account easy as well as the withdrawal from your account. After all, that part is the part that should make you and keep you happy. Brokers just ‘hold’ your account and therefore should not make it difficult for you to have access to your funds. If a broker puts up roadblocks, gives you a sad story or otherwise prevents you from getting anywhere near your account that should signal to you that you need a different broker.
4 – Platform Used For Trading
The brokers trading platform is where all your action is going to take place. It needs to be stable and user-friendly. Well, a lot more user-friendly than Windows 10 at least. Plus, there may be some free extras that come with particular broker trading platforms. Ask if they include free news feeds, easy-to-operate and understand tracking and charting tools, data to assist with your trades and free Netflix. Okay, that last one is not really on the list but what if it was?
5 – Execution
Your broker is obligated to find the best possible price to fill out your order at. Under normal market conditions you should not have any pricing surprises resulting from cutting it too close to the market price. The execution of your trades should be seamless, accurate and efficient. Anything less could result in a different kind of execution, if you know what we mean.
6 – Customer Service
Okay, we don’t expect free coffee and doughnuts from a Forex broker but we would expect some fairly decent interaction and service. The service part is what would keep us involved and without it, you may as well run to somewhere else where you get treated with some respect.