A perfect forex broker doesn’t exist. We know that even the most popular brokerage brand out there has its flaws. However, there are still some things a good forex broker often possesses.
The following are the things you should look for in a forex broker. Check them out before you sign up for the services of one.
The first and foremost quality you should check is the broker’s regulatory status. Is it regulated? Does it provide complete information as to what and where it is under regulations?
Regulation means security for your money. You work hard for it so you wouldn’t want hand it over to some suspicious dealer, would you?
Checking the forex broker’s regulatory status isn’t that difficult, too. You can find major regulatory agencies around the globe that ensure the credibility of good forex brokers.
Costs and Fees
The forex trading world isn’t without any fees or charges. Even though it’s very cheap to join the game, you still have to pay.
Here’s how it works: every time you trade, you must pay either a commission or the spread.
Find a forex broker that charges the most reasonable prices around. Not the cheapest and not the most expensive.
High brokerage charges don’t always equate to quality service. And you should always take super cheap charges with a tubful of salt.
Withdrawals and Deposits
If you join and participate in trading forums, you’ll see a lot of traders complaining about their deposits and withdrawals.
This is essentially a very important matter to consider. A good forex broker lets you deposit and withdraw funds on your account without much of a fuss.
These brokers only need to hold your money for them to make the trading work. This means if you want to pull the funds out, there should be no problem.
If you make a profit, you’d want to get it. If the broker is suddenly making it difficult for you to get your money, it’s time to think twice about continuing to get the service of that broker.
These days, forex trading happens mostly online. And by that, we mean that it happens on the forex broker’s trading platform.
As a result, you should make checking the trading platform a priority. It should be user-friendly and easy to control. There must be no history of troublesome and long system shutdowns et cetera.
Also, check out its features. Forex brokers usually offer trading platforms with bundled features to make the trader’s trade more efficient.
Among such features are economic calendars, market depth, technical tools and indicators, and charts and graphs.
Right now, the most popular trading platforms are the MetaTrader4 and MetaTrader5.
As we have mentioned, even the best brokers have some flaws. Many of these flaws happen outside the control of the brokers themselves. And sometimes, they happen at the most unfortunate of times.
This is where the customer service comes in. Should there be any problem in the course of your trading, a good forex broker will always have its customer support ready to assist you.
These customer service people should be accommodating, patient, and skillful when it comes to solving and resolving your concerns.