Choosing a Right Forex Broker
A number of new Forex brokers, both legal and illegal, continue to emerge every day as Forex trading keeps on getting more and more popular, which makes it really important for you to choose an absolutely honest Forex broker.
Every broker provides similar packages, but you will need to differentiate between who offers more reliable services and fulfils needs in a better way. Here is a list of some of the most important factors you should consider before opting for a broker.
- Type of Brokers: There are two different types of brokers namely ECN brokers and desk brokers. Desk brokers are also called market makers. In the case of market makers, the dealer acts as the rival in your trade, while on the other hand in case of ECN (Electronic Communications Network), your orders are matched electronically. ECN brokers do not take up the position of a rival in your trade when your orders fail to match others’ trades.
- Regulated or Non-Regulated: You should always check if a broker is regulated before you choose, and mind you, it is very important for a broker to stay regulated at all times. Unregulated brokers are just going to be problematic for you in the long run. Moreover, in the case of any banking issues at the time of withdrawals or deposits with unregulated brokers, you will not be able to receive any legal help and will also not be able to file any complaints.
- Types of Accounts: There are several account types you can expect to choose from as offered by the brokers. It mainly depends on the investment range and the features offered. Forex trading accounts such as standard, micro, demo or mini are the most commonly offered accounts by the brokers. You should always analyse which account suits your style best, falls under your initial deposit range and tolerance level before you choose an account.
- Types of Trading Platforms Provided: A trading platform is the most critical part of online forex trading as it is an interface that allows you to understand and place your trades in the forex market. You should choose brokers that offer the best platforms, showing pictorial graphs, packages, features and charts, etc. that help you analyse the market’s trend. Only go for a broker that provides an all-inclusive platform along with reliability.
- Commission and Other Charges: Every broker is going to charge you fees in some way or the other for providing services. Some brokers will be charging you interest on the transactions you make which go held overnight. While some brokers charge fees in the form of hidden charges in order to gain profits with no risks. Some brokers will always charge you, regardless of whether you make a profit or not.
- Deposit and Withdrawal Methods: Yet another important aspect of forex trading is the banking part, which includes the deposit and withdrawal of funds. There are brokers who impose only a few restrictions on the fund limits for both, withdrawals and deposits, which is probably due to the fact that they are regulated. Always pay attention to all the banking terms and conditions before you choose a broker.
Unregulated brokers barely have any restrictions for fund withdrawals or deposits. However, in the case of regulated brokers, any disputes regarding deposits or withdrawals could be solved easily as the broker itself takes up the responsibility. Hence, it is recommended to avoid unregulated brokers.
Yet another important feature you need to worry about before choosing a broker is the customer service. Whenever you try to reach the customer support team via live chat, phone or email, check whether their support team is easily reachable and proves to be helpful.
There are binary options brokers who offer a number of promotional services, bonuses, rebates and so on, and these are something new traders can always take advantage of.
After going through everything mentioned above, you may feel like it is going to be pretty difficult to find out a broker that is flawless in every way. You are not wrong, but you can still try and avoid brokers who are obviously going to get you in trouble and are going to put all your earned investments in vain.
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Choosing the right strategies is probably the most critical aspect of Forex trading as it decides whether you succeed. Our