checklist Things to look for in a broker

Things to look for in a broker

Bonjour fellow trader,

Welcome back to another installment of learning Forex the segment based on demystifying Forex daily, hourly and minutely like the famous Forex charts. Here we need to learn how Forex brokers work and how to chose one. We previously looked at the three types of brokers and learnt their traits. This were dealing desk and no dealing desk characteristics. Again if you think I’m high on that foreign stuff and cant understand what I’m saying please look back to the articles INTRODUCTION TO FOREX BROKERS and TYPES OF FOREX BROKERS. There we learnt the difference at it would be best for you to do the same. Since now we will be looking at the various characteristics to look for in a broker so as to choose the right one.

Since choosing a broker can be a very overwhelming task we will look at qualities to look for in a broker so as to make a better decision;

Security

The broker must have a high level of security if they want your hard earned cash right. Someone should always be legit if you want them to handle your cash. Luckily checking the credibility of a Forex broker isn’t as hard you just need to check it against the various regulatory agencies in its country of operation or the global agencies eg. National Futures Association(NFA) and Financial Conduct Authority (FCA) just to name a few.

Transaction Costs

Find out their transaction costs since they are part of trading. Know whether they have tight spreads or charge a commission and compare it to your other options

Deposit and Withdrawal

A good one should make it as easy as possible to deposit or withdraw your funds. You should always make sure the brokers withdrawal and deposit process is as easy as possible. By first checking the process or asking traders or reviews online.

Trading Platform

As you might have guessed now in online trading the trading happens through the brokers trading platform. This means the trading platform should be stable and user friendly. Also other offerings like news feeds, easy to use charting tools or information needed to trade properly.

Execution

The broker should give you the best possible price always for all orders. The broker has no reason to execute your trade at the price needed. If you execute the trade it should be at that price or at micro pips of that price nothing else.

Customer service

Since nothing is perfect look for a broker that you can easily talk too if a problem arises. Also the level of understanding those you talk to should be of utmost importance. Look for good customer support.

 

This should be easy to follow now we go to BAD FOREX BROKERS..

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