Deciding to venture into the forex trade arena is a bold and smart move. However, you cannot go at it alone as it needs someone to hold your hand if you want to succeed, especially in the beginning. A forex broker becomes the best go-to person, but not everyone who claims to be one is the right one. Learn from the following top four tips on what you should consider when looking for a forex broker.
1) Customer Support
It may be a factor many may not consider, but it is crucial whether you are an experienced or inexperienced trader. Things happen; you may forget your account login details, experience delays in withdrawals, or have a technical hitch in the middle of trading. Such situations leave you in dire need of communicating with your forex broker, but if they are out of reach, that could translate to huge losses.
Therefore, when searching for a broker, go for one with 24/5 open and convenient communication channels, fast and courteous. Among the factors used to rank the best forex brokers on the SFGate review, customer support is one of them, and for a good reason. Inadequate services to customers can ruin the trading relationship, and that is why it is vital to test the waters before you sign up with any broker.
2) Spreads and Commissions
Brokers get spreads for every transaction they do, which does not include commission or other costs. Depending on the broker you may get, they may only be getting the spread but not charging you a commission. The ECN system and market marker are the primary tools brokers use to decide how much they will charge.
However, it is crucial to know how much a broker will charge so that you do not get into the hands of unscrupulous traders who charge exorbitant prices. An idea of the ideal estimate a broker should get in terms of spreads and commission will help you know if the one you go to is the right one or a rogue one.
It is also crucial to go through the fine print before signing a deal with a broker so that you do not get caught unawares when you have to pay fees you were not wary of. Some of the costs you can look for include inactivity fees, annual fees, trading platform fees, and research charges. You can minimize these fees by opting out if you discover your broker is charging extra and you have found one that is not charging them.
Sometimes a satisfied customer is all it takes to make a trader stand out. Word of mouth spreads fast, and it can make or break trust. Therefore, before you deal with a broker, you can research what other people have to say.
You can enquire from family and friends who have been in the forex trade for some time to know whom they can vouch for to be the best. You can also read customer reviews on websites providing brokerage services and decide if the firm is worth working with or not. Reading comments from clients who have had first-hand experience with a broker is the best way to know what awaits you.
Another way is by reading online reviews from trusted sites to find detailed information about different companies. Ratings of the best Forex brokers UK require intense research, and before such data gets published, the writers have done a diligent search. Therefore, you can trust their word and make an informed decision based on the factors you are looking for in a service provider.
You do not want to be a victim of cybercrime because you overlooked the necessity of your safety online. The right forex broker will ensure that their customers’ money is safe by providing strong security measures. SSL 128-bit encryption is the best technique to secure money transfers online, and any reputable service provider should have it.
Apart from ensuring the website is secure, you also have to take the extra step of having a strong password. A complex and unique password for every site will help secure your transactions as a third party cannot access your accounts easily.
Another aspect when considering safety is the issue of regulation which requires you to ascertain that the firm you choose complies with all the market regulations. Even though no central body governs the forex currency, there are independent and governmental bodies that keep it in check. These supervisory bodies set standards that any broker under them should adhere to.
As such, any forex broker under them must go through the proper registration process, acquire a license, undergo regular audits, and notify clients of any changes in terms of service. It helps maintain ethics in the forex market and ensures every client receives a fair service.