Between you and I, this is the most important decision you can make as a trader. Even if you have expert knowledge of the financial markets and currency trading, it will not serve you well with the wrong broker.
For starters, do your homework. Make sure you know what you’re looking for from your broker and that they can deliver on expectations.
Most every broker professes to be the best in the business – but only a handful really are. Here are some important tips that you can trust when selecting a Forex broker.
Check for licensing and regulation. Many brokers run unreliable services and are not regulated by any official agency, government, or authority. Respected regulatory authorities such as the FCA, the FSA, CFTC, CySEC and others are the gold standard. Make sure your broker is fully regulated to offer real money Forex trading services.
Security is another important element to consider. The integrity of your personal and financial information should be safeguarded at your chosen FX broker. To this end, look out for secure socket layer protection and encryption protocols.
Does the broker offer insurance on invested funds, and segregated accounts?
If you’re unsure about any of these details, give the broker a call. The quality and reliability of the customer service is a great barometer of what to expect when you register, deposit and trade for real money.
Make sure that your broker offers affordable minimum deposits, a wide range of major, minor and exotic currency pairs, and most importantly tight spreads. Recall that spreads are the commissions earned by the broker for its FX trading services.
Deposit and withdrawal options and processing times are extremely important.
A licensed and regulated broker offers timely and guaranteed withdrawals. Other aspects to look for include margin requirements, leverage, mobile trading functionality, and the quality of the trading platform and user interface.
It’s a lot to consider, but due diligence is the only way to guarantee a safe, secure and enjoyable Forex trading experience folks!