- Section: Regulatory compliance
- Section: Tradable Assets offered
- Section: Account Features
- Section : Trading Platform
- Section : Customer Service
- Section: Minimum deposit amount
One of the main questions which traders ask themselves is how to find the right broker. There are just so many different companies out there, but how do you decide? Here is a list of things you should consider when you want to select your online forex broker.
When getting started trading in the forex market, you might be confused about which broker to choose. You’ve found some promising prospects, but how can you tell if they are the right one for you. There are several factors to consider when answering that question. The best way to ensure that your business is running smoothly in the future is to be sure that your broker is compliant with current regulations. Certain legal and regulatory issues have led to mechanisms for monitoring, tracking, and reporting on transactions that are standard across most major online forex brokers today. Forex brokers operate globally, so regulation is a significant issue. In order to make sure your broker is following the law, double check that it’s complying with either international regulatory bodies. Regulations also exist at national levels as well; in Kenya, the regulation is done by the Capital Markets Authority (CMA) . Therefore, make sure your prospective broker has licenses from all relevant national regulators.
TRADABLE ASSETS OFFERED
Tradable assets are the different types of assets offered by the broker which you can trade on. Some forex brokers allow you to buy and sell every combination of currency pairs, derivatives on shares.
Some also allow you to trade futures and forwards on currency pairs as well. When you choose a forex broker, it’s important to look at both the number of currency pairs offered and their liquidity (how easy they are to buy or sell). You want a variety of choices so that if you want to change your investment strategy, you can do so easily. The range of the number of assets offered for trading by your broker determines which asset you can trade. The tradability you choose will depend on your personal preferences and goals. You should, however, keep in mind that the more tradable assets are offered by the broker, the larger selection you have to choose from and the more competitive pricing you will be able to negotiate (as long as you’re not trading excessively).
It is important to consider all of the features available to you when selecting your Forex Broker. These features will not only affect your trading experience, but also the amount of money that you can potentially earn. Forex accounts often offer bonuses and additional tools, such as risk-management tools, charts, and platforms, so choosing the right forex broker for yourself is essential to achieving your goals.
To ensure that you are choosing a forex broker with the right account features for your needs, you can ask yourself questions such as; Are there any hidden fees? What is the minimum deposit amount? (You want to start off with little capital), what are the commission you are paying for your account? and so forth. All these account features should be greatly considered to ensure your sustainability and profitability in Forex Trading.
TRADING PLATFORM OFFERED
Another step to consider in selecting the right forex broker for you is determining which platform you’ll want to trade on. There are various trading platforms available, the most popular are MT4 & MT5, CTrader and Trading View. These platforms have some similar features such as they all allow traders to place short or long positions on various types of currency pairs, they all have a wealth of educational resources available, including video tutorials and trading guides, these platforms can connect to your forex trading account and help you build your portfolio. However, each has its own unique features varying from Excellent customer support, tools for helping trader optimize trading strategies and many others.
Customer service should be top of your priority as a trader. When looking at customer service, you need to look at it in different views. The first thing to look at is the number of clients the broker has. This tells you how popular and trusted the broker is. The more clients that a broker has, the better.
Secondly, you should begin looking at reviews of its customer service. Customer service review will give you an idea of how happy other customers are with their experiences with a particular brokerage firm. While only reviews from verified customers will be completely accurate, such reviews can still be helpful in assessing whether a particular forex broker has good customer service. Look for brokers who offer responsive support via email and telephone.
MINIMUM DEPOSIT AMOUNT
When choosing a forex broker, you’ll need to consider various factors. The minimum deposit amount is one of the most important factors to consider. All forex brokers require you to put a minimum amount of money into your account before you can start trading. This amount is called the minimum deposit amount. Some brokers have very low deposit requirements, while others may require you to deposit hundreds or even thousands of dollars before you can start trading. There are benefits and drawbacks to both low- and high-minimum deposit amounts. Keep in mind that the minimum deposit amount does not affect how much money you make or lose during a trade. It only affects how much money needs to be in your account before you can start making trades.
What really matters to an Forex broker is that you are profitable and are able to maintain such profitability over the time. It is therefore crucial that your selection process includes a thorough examination of those Forex brokers who fit your trading style with their support and other trading tools, including trading platforms or web interfaces, account features, deposit & withdrawal conditions that are best for your business needs and financial status as well as regulatory policies & procedures.