Finding a solid Forex trading broker can make a big difference in trading success, as most studies of Forex trading habits show that users who are comfortable with their brokers tend to make higher profits. As such, finding a broker that suits your personal trading needs is essential and less daunting than most realize. There is a specific set of criteria that will help dictate the quality of a broker. The following are 10 things to consider when deciding on the best Forex broker for you. You can also find user reviews and specific articles on Forex Sam Busters.
1. Minimum deposit amount. By understanding your budget, you can assess which brokers you might be most compatible with early on. Almost all online brokers require a minimum deposit, which can start as low as $25 US dollars and go as high as $100 for those more established. Depending on your level of financial commitment to your trades, you can use this as the first round of elimination for runners out of your financial situation.
2. Customer service. If you have questions about how the site works, it’s important to have a reliable customer service team that can act and react as fast as the markets do. Check other user reviews of the sites to find which brokers have a better reputation in this capacity. Forex Blog has some reviews of some reputable brokers and user satisfaction ratings.
3. Regulation. Making sure that a brokerage is regulated by the proper authorities will allow you to feel better about using them as a vehicle for your transactions and investments. Click here for more information on Forex regulations.
4. Website and interface of the platform. Deciding on a brokerage has a lot to do with the aesthetics and feel of the sites or platforms themselves. Take a look at a few and see how it feels to navigate, access information and understand your way. There are enough runners that you shouldn’t have to waste time getting used to the site, you should feel good right from the start.
5. Minimum Spreads. Most legit sites have a 2 pip spread, this is generally standard and anything larger than that should be looked at further.
6. Financing options. It is mandatory that you know that the broker of your choice accepts the currency with which you intend to fund your account. Most brokers accept all major currencies, but it’s still important to double check.
7. Trading Fees. Some brokers charge for their trading platforms, however many do not. Again, double check all rate schedules before passing on your information. Escape Artist has an excellent article on the ways online brokers make users pay fees that may not be clear.
8. Leverage. If you are one of those who frequently use this tool in your investing style, check the levels of each broker and make sure it meets your needs.
9. Bonuses. Here you can find a great list of account activation bonuses given by online brokers. Many brokers give cash bonuses for the first deposit an investor makes. For sites that are very similar, this can be a deciding factor in choosing which broker to choose.
10. Commitment to Investor Education. Many sites stress the importance of continuing education for investors to help them progress and better understand market fluctuations. If it is important to you to have a lot of information available, outside of the expected market data, check the quality of the educational materials provided by each broker.