How to Choose the Best Forex Broker for Beginners

How to Choose the Best Forex Broker for Beginners
Published: 20 February 2019 (2947 Views)
The Forex market is one of the largest financial markets in the world. It offers 24 hours trading with a turnover of trillions of dollars a day. The currency market is filled with people with diverse experiences from beginners to topnotch traders. For beginners, there is much to learn. It calls for exceptional skills and practice so as to learn the broad market operations. This is where a Forex broker comes in. However, choosing the best broker can be an overwhelming task bearing in mind you have no clue on what to look for.

The article below explains qualities to look for when choosing the best forex broker for beginners. Thanks to levers, the possibility to grow your investments and make proceeds is high.

The best Forex broker must be certified with a regulating authority

The rewarding currency market is full of impostors whose aim is to suck money from unsuspecting traders. However, the forex market is well structured with plenty of regulatory agencies in order to control these sham behaviors. For that reason, you need to establish whether your ideal broker is listed by these regulatory agencies. Example of such agencies includes Australian Securities and Investments Commission (ASIC), National Futures Association (NFA), Financial Conduct Authority (FCA) among others.

Distance yourself from any broker who has not attained the necessary certification. A good trading broker will uphold their status by ensuring they are certified.

Competitive Commission rates

Transaction costs are obvious when it comes to Forex trading. There is a mandatory commission fee which one has to pay at the initial stage of trading. The commission can either be fixed or variable. A fixed commission is stable and does not change.

On the other hand, variable spreads changes depending on the available market conditions. That means a good trading broker should be able to offer the most affordable fixed spread rates. The reason is that stopping a loss order is equally impossible due to unpredictable market conditions. A good broker should, therefore, offer a balance between the transaction charges and security.

Ability to provide a practice account

Its recommended testing your trading scheme carefully using a practice account before investing your money. A practice account serves to provide the actual market conditions which enable you to explore all possible outcomes of your plan for without risking your investments.

A forex demo account will perfect your skills, develop stability as well as improve your confidence when trading. A good trading broker should be in a position to provide a practice account free for their clients. Distance yourself from brokers who don't provide such tools especially if you are a beginner.

Capacity to offer several account types

Like the fashion world, everyone also has their own tastes and preferences when it comes to currency trading. A good Forex broker should, therefore, provide the same in accounting. The broker should offer a variety of account type to satisfy every customer desires. If a broker provides one type of account, then it needs to be tailored in a way it meets each specific needs of a client.

Ability to offer various tradable instruments

We live in times of economic volatility where most investments are insecure. That said, you have to expand and stretch your portfolio in order to safeguard your investments in times of economic crisis. A good broker should, therefore, offer many options for tradable instruments such as stocks and commodities. Do not deposit your money in a provider offering limited tradable instruments.

A user-friendly trading platform

Unlike a physical market, most of the currency trading transpires through an online trading platform. You, therefore, need to check the status of a brokers trading platform before investing your hard-earned cash. Does the platform offer easy to use charting tools? What about its technical tools and information? Does it provide free news feed? That said, you need to check a trading platform which is both stable and easy to use.

Excellent and quality customer service

Online Forex trading does not necessitate one to visit a broker's place of work to place orders. This means you need to pick a trading broker who understands, approachable, supportive and patient when addressing issues. You need a broker who can be easily reached when problems arise. Some brokers pretend to be supportive at the start of trading but desert you the moment you deposit money.

Final thought

Success in Forex trading calls for a credible and dependable trading broker who will meet your needs without unnecessary coercion.

- Byo24News


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