Forex Broker
Note that there is no Best Broker in general, But you need to find the best one suited your Trading Style and Strategy. For this reason, we have presented a detailed research on what a trader should consider before selecting a Forex Broker.
How to Choose a Forex Broker
Some brokers may also have unfair spreads, hidden legal details, and fine print, or even just be outright frauds and scams. As important as a broker is, it is often very difficult to choose the right one for your investment. There are some factors to consider before making a choice. To choose the reliable broker for you, consider the following;
Regulation:
The implication of trading with an unregulated broker is that you will not be able to do anything if it turns out to be a scam. There are several regulatory bodies worldwide that regulate the activities of Forex brokers.
It is important that you look out for a broker that is registered and regulated by a strong regulated body. Some Brokers hold regulation with more than one securities.
Our recommended Regulated Bodies are;
- FCA (UK)
- CySEC (Cyprus)
- S. SEC, CFTC, NFA, NYSE (USA )
- Australia (ASIC)
- FSC
- FSA and JSDA (Japan)
- FINMA (Switzerland )
Reputable brokerage services will always have suitable regulatory stamps, approvals, and other verifiable documents and pieces of evidence to indicate their compliance with proper regulations and laws. Make sure you start your financial trading with a highly regulated Broker.
Trading Software and Platforms
In order to execute your trades, you must have a trading terminal connected with a broker’s server. While many platforms exist in the industry, by far the most common is Meta-trader 4 or MT4 in short. This trading terminal is used by over 85% of brokers, and dozens of reviews on the product exist that detail its functionality and flexibility. There are lots of free and paid indicators, scripts and Expert Advisor is found in the Industry for MT4 terminal.
However, it is far from the only solution, and you may find other options to be better suited to your needs. There are some other terminals like cTrader, NinjaTrader, among other.
Some brokerage firms may release proprietary software designed to function with their service, and this software often ends up performing better than anything else for that specific broker.
Leverage
Leverage entails the loan that a broker gives to the investor. Forex Broker offers leverage from 1:1 to 1:3000 nowadays. Whilst leverage enables traders to magnify their profits on successful trades, it also magnifies losses on unsuccessful trades; meaning that it is possible to sustain significant losses, perhaps even the entire sum of your invested capital
As such, we urge all clients to adopt a prudent risk management strategy in accordance with their investment goals and level of trading experience.
Deposit and Withdrawal Methods
The ease of moving funds from points A to B is a major factor to consider. It is important that you check what payment options the broker offers and decide if they are convenient for you like Neteller, Skrill, Paypal, Bitcoin, Cards (Visa/Master Card), among others.
For withdrawal, it is required to use the same payment method that you made your deposit your fund with. In case of several payment methods used the most used one will be considered as the main payment option.
Furthermore, you must be sure that the payment method is supported in your country, whether there are payment charges and how much, and how long it takes for transactions to be completed.
Spreads, Commissions, and Fees
The dealing spreads that your account uses must be competitive if you’re to record long-term success in online trading. For every currency pair, there is a bid price and an offer price. The difference between these two is what we call the spread. Some brokers charge an additional fee or commission, apart from the fact that you trade on spreads, for every transaction you carry out.
Forex Promotions and Contests
We love the free stuff and gifts – Thus, Some of Forex Broker offers attractive bonuses, gifts, contest and freebies for their new and existing clients. Note, watch out the broker’s activity with our above guideline before going through the bonus.
No Deposit Bonus
A Free-Credit that offers to the new clients to start their trading without any invest thus no risk as well. It is a great way to test the broker’s platform and services. The bonus amount offers up to $100 USD, while some of the brokers allow withdrawing profits assets the terms of the promotion.
Deposit Bonus
A Bonus provides on client’s funding. Usually, the bonus offers in the percentage of the trader’s deposit amount.
Contest
Forex contest is a trading competition held among the traders with the equal conditions for all participant. The winners receive cash/tradable money and gifts as the prizes of the promotion.