Trading is a very profitable business but it is hard to trade without choosing the right broker. Many novice traders don’t even know about the traits of the high-end broker. Eventually, they end up with the average class broker which is very lethal for your career. So, here we have enlisted a few steps which you can follow to choose the right broker.
You face the obstacle to choose a Forex broker, as there is no central marketplace of trading. Forex broker helps you to overcome your dilemma. They provide a professional trading environment where you can take the trades by using the online platform.
It is tough to choose the best one as there are so many brokers now. But the following tips will surely help you to get the right fit.
Having NFA Membership
This verification will save your time in the broker selection process because only the reputable Forex broker gets the membership of the National Futures Association (NFA). You should also check whether he is registered with the U.S Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant and Retail Foreign Exchange Dealer or not. CFTC monitors abusive actions and takes steps. In such a way, if you find these membership or registration proof, then you can be assured about your broker.
Be Aware of Broker’s Website
Sometimes a flashy website of a dishonest broker can make you believe in him. But be careful. The website doesn’t prove the trustworthiness of Forex brokers always, and you can be cheated sometimes. To be more assured, you should open your Forex accounts with firms that are regulated by laws. But if you want to stay on the safe side, read more about the high-end broker Saxo and trade with them.
Know about Commissions and Spreads
A broker indeed makes money with commissions. Your loss or gain doesn’t affect his income. Generally, a Forex broker charges according to the percentage of the spread, sometimes the difference between the bid or asks the price of the Forex pair. But some brokers advertise themselves as they will not take any commissions rather they will make their money with wider spreads.
This spread can be fixed or it may change based on the market. To cut down the cost of trading, it is better to choose a broker who offer dynamic spread.
Ask about the initial deposit
Forex account can be funded with at least 50 dollars. If you get the leverage then indeed your buying power will increase in a minimal deposit. Before selection, check what package the broker can serve you. Generally, they offer mini or micro accounts with varieties of primary deposit requirements.
24×7 customer support
Forex trading runs 24 hours a day. So, check or ask your broker if he can provide customer support any time you need. Check if you can get the facility of contacting a live person with live support, or you have to wait for long hours to get the reply.
One proven method to check this before is to give them a phone call in their customer support, and checking if they are answering in your quick call or not. By the quick call, you may ask them about their company rules, leverage, or spread.
Examine the reviews
Sometimes by reading the reviews, you can get an idea about the best Forex broker. Our personal opinion is just to read all the reviews. Don’t just focus on praise but think about that criticism too.
But be careful don’t hire anyone who has just constant reviews with praise, sometimes reviews can be fake. So, get a Forex broker who has 90% of positive reviews with a mix of 10% of negative reviews. In such a way, you will get the ideal Forex broker for you.
The bottom line is to keep open your eyes before hiring a Forex broker. We wish if you follow those last discussed tips, then, you can get the best broker right there. Never select your broker without considering the above-mentioned factors. Take your time but trade with the reputed brokers only.