Foreign exchange market, called Forex, is a place where you can buy and sell different currencies. It has become a very popular way to invest money over the past years, but in order to actually make some, you have to know what you’re doing. There’s no such thing as the central marketplace for the forex market, that’s why traders have to choose a forex broker who will provide them with a platform for trading. Here’s where it gets complicated – because of the increasing popularity of trading, also the number of brokers is growing, making it more and more difficult for the people to choose the right one. There are places like https://engineforex.com/ where you can find any online forex broker you may need, but how do you know if you’re choosing the best one? There are some tips to remember when you make your decision:
- Security level
The security level of your potential broker must be high, proved and checked if you’re going to let him dispose of your money. Luckily, it’s not hard to check if your chosen broker is legit. All around the world, there are special regulatory agencies that can tell if one is trustworthy, or if there’s a fraud risk. For examples, in the United States, there are National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC), in the United Kingdom Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) and in Germany Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN). It’s something that you absolutely must do before deciding on anything.
- Transaction costs
Unfortunately, there’s nothing you can do to avoid transaction costs. No matter the currency, no matter the country, no matter your status – they will always be there for you to pay. It means that you have to pay either a commission or a spread, and you have to do it every single time you trade. That’s why you should look for a broker who offers lower transaction costs – but not at all cost. The more reliable broker, the higher transaction costs, and though it’s possible to find something in between, it’s better to choose trustworthiness over money saving.
- Deposit and withdrawal
Make sure that your broker has no problem with you withdrawing your money. After all, it’s what this is about – you have a right to dispose of your earnings. A good broker will make the transactions easy for you, so if you have an eye on one, but there are some conditions when it comes to you taking your money back – something may be wrong.
- Trading platform
The action of making money – that’s why you enter the forex market, so you have to be sure that everything works smoothly. You can trade currencies within different markets through a trading platform of your broker. Therefore, it should be important for you to operate through a user-friendly and stable platform, right? You don’t want to encounter any technical problems while dealing with money. Make sure it provides you with all the information you may need – being up-to-date with news is crucial when it comes to forex trading. A good trading platform offers various analysis tools and has easy-to-use operating software. There are cases when people made transactions by accident or missed their chance just by investing incorrectly because of their malfunctioning platform. A reliable forex broker will offer different types of accounts as well, depending on your status, experience and the amounts of money you would like to invest, as there are different types of trading and each has some other benefits.
- Execution
You broker absolutely has to take advantage of the best possible prices and fill your order. If there’s nothing abnormal about a market that day, there are no reasons for your broker not to fill you if you decide so. It’s extremely important because when it comes to trading – time really is money. So be absolutely positive that you know how long the execution takes. Maybe it’s automatic? What are the limits of trading without any quotes? It’s essential to know all this before you decide on anything. Most often, brokers offer a demo accountant that you may open without strings attached, just to see how everything works. It may be a good idea, especially if you’re new to forex trading.
Apart from that, you should always aim for a broker who’s dedicated to the cause and its customers. Sometimes, during trading, the problems may arise and in that case, you want someone who will be easy to reach and eager to help, so make sure you know what your broker is after sales, not only during the opening of your account. It’s a decision that you shouldn’t make lightly, so it’s better to follow some rules and do thorough research. Then, and only then, the only thing that’s left, is to make money.