These days there is so much competition in the retail forex market and so many brokers to choose from. Instead of being confused when navigating through all brokers are available, you should look for 6 these qualities important in the broker.
The most important thing is that your broker has a high level of security, especially since you will give them control of your money. For your safety, you must make sure that your broker is both legitimate and credible.
Below is a list of countries with their corresponding regulatory bodies:
United States: National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA)
Australia: Australian Securities and Investments Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
France: Autorité des Marchés Financiers (AMF)
Canada: the Autorité des Marchés Financiers (AMF)
Before you work with any broker, you should ensure that your broker is a member of one of the regulatory bodies mentioned above.
Regardless of what you do, there will eventually transaction costs. Of course, you will try to find the best deal at the most affordable price (commission or spread forex). However, sometimes you get what you pay for.
By paying lower transaction costs, you may get less of a reliable broker. It is important to find a balance between the price you are willing to pay and the quality you deserve.
A good broker should allow you to efficiently and comfortably deposit funds and withdraw your earnings whenever you feel like it. There should be no motivation for them to deny you access to your advantage unless they need funds to facilitate more trade.
In the online forex environment, trade takes place through brokers' trading system. So be sure to test what has a bid brokerage platform. As a user, it must be understood, user-friendly and easy to navigate.
Some even offer a unique tool to make your trading much more modest.
Your broker should be looking out for your best interests. As a result, they have to submit your order at the best price. This means you have to sell and buy as close to the market price as possible.
If you click buy for a particular trade, you have to almost instantly get submitted on the price or the micro pips. These pips little difference in price can make win that particular trade is quite difficult.
Brokers should be there helping with the accounts and technical support when you need them the most. If something goes awry, it was basic as you can get in contact with them as soon as possible.
Some brokers may try to fool you into trusting them when you open an account, but when you need their support they are nowhere to be found. So be alert for trustworthy and really helped broker.