The foreign exchange market is the world’s largest financial market, standing at approximately 4 trillion dollars in average traded value per day. However, there is no unified place for conducting such trades. Therefore, those interested in entering this world employ forex brokers to assist them in conducting their activity. However, this industry is constantly growing so choosing the right one can be daunting at times. This article will touch upon various considerations to factor when choosing a forex broker in today’s competitive forex marketplace.
Regulation
Just because a website looks well-constructed does not guarantee that it is regulated. Forex regulatory bodies develop rules, programs, and services to protect the integrity of the market, traders, and investors, and to help members meet regulatory responsibilities. Forex regulation usually depends on the country a brokerage is registered and operate in. Brokers who are subject to regulations will state this and their regulation number throughout their website. For instance, LegacyFX.com is a forex and CFD broker that is duly registered by the Vanuatu Financial Services Commission (VFSC) under registration number 14579. Other common regulators include Cyprus Securities and Exchange Commission (CySec), South African Financial Sector Conduct Authority (FSCA), German Federal Financial Supervisory Authority (BaFIN), and the United Kingdom Financial Conduct Authority (FCA). Overall, it is recommended to open accounts with firms that are registered in order to maintain the integrity and safety of one’s funds.
Accounts and Offerings
Every forex broker uses different offerings to entice clients into joining. One way many to do this is by presenting multiple account types, which highlight different requirements needed from the trader to obtain the benefits of that account level. Usually different account types require different minimum deposit amounts and offer a variety of leverage, spreads, pips, and swaps. Additionally, brokers who offer an extensive portfolio of commodities, indices, stocks, currencies, and assets to trade on, can present potential investors greater opportunities and selections to choose from.
Customer Service
As forex trading is a 24 hour a day business, the availability of a brokerage’s customer service greatly weighs into their effectiveness. One should consider the communication methods offered, be it live phone calls, chats, emails, help pages, WhatsApp, and Telegram. These requirements extend also to the personal account managers that assist clients in trading. Additionally, a company’s ability to answer questions and details about their services can also influence their dependability.
Trading Platform and Tools
Brokers should offer its clientele an easy to use, visually pleasing, and comprehensive platform and software is easy to use. Technical, fundamental analysis, and educational tools are welcome additions that some brokers offer to better assist their clients. Overall, clients should feel that they can enter and exit trades easily through clear ‘buy’ and ‘sell’ buttons. One of the most popular platforms available on the market today is the MetaTrader 5 platform. Additionally companies who offer videos, e-books, trading calculators, webinars, courses, glossaries, helpful webpages, and demo accounts, are able to better educate and inform their clients of their abilities as a forex broker.
Conclusion One’s confidence in their forex broker will enable them to devote more time and attention to analysis and developing forex strategies, which in turn will result in a continued partnership between the investor and the broker. So, investing some time and research into finding a compatible broker ultimate can increase an investor’s odds of success.
