Choosing a trustworthy and reliable forex broker is an important step in your trading journey. There are thousands of options to choose from but how do you know which is right for you?
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Well, when choosing a broker, the first thing you need to learn is how to properly identify what a good broker looks like and rule out sketchy options. Unfortunately, within the forex industry there are a lot of unreliable brokers. You want to be confident that your money is safe with the broker you decide to work with.
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Additionally, you need to determine if the brokers transaction costs and tools align well with your strategy.
5 Tips To Choose A Forex Broker
Let's dive into the specifics! Here are 5 tips to choosing the best broker for you:
1. Regulation and Security
The first thing to look for is a well regulated broker. Regulation insures that what you are going to be doing with your money is going to be relatively secure. Regulated brokers are required to follow strict rules and are closely monitored by the government in which they are operating in. Additionally, the withdraw and deposit process.
When working with an unregulated broker, there is a risk that your money will not be secure. Unregulated brokers are not held to the same standard or as closely monitored as regulated brokers. We recommend working with regulated brokers only.
2. Transaction Costs
Forex brokers make their money through through fixed rate commissions, and/or taking a small bid/ask spread on your trade. A broker that makes money through commission simply takes a fee when you enter a new trade. Spreads and commissions are similar but spreads can be a bit more dynamic and get wider or smaller based on the markets liquidity. During an off hour, spreads get bigger, during a busy trading hour, they tighten.
When you are checking out a broker be sure to look at the reviews online as well as go through their website. Look for any information about what the broker says about their own spreads and their own commissions. Be competitive here and aim to find good spreads and commissions offered by different brokers.
3. Easy Deposits and Withdraws
At the end of the day, it does not matter how successful you are within a broker if you cannot easily withdraw your money. Usually a regulated broker will have a much smoother process
4. Competitive Trading Platforms + Tools
Another aspect to take into account is what trading platforms and tools they provide. Do you trade with Tradingview or Metatrader? You want to make sure that the platforms that your broker is offering are competitive and align with your preferences. Further, checkout the tools that they offer traders on their website.
5. Helpful Customer Support
Lastly, and perhaps most important, you want to make sure your broker has exceptional customer support. When facing issues regarding your money, you want to feel confident that your broker will provide you will easy access to support. Read reviews and reach out to the customer support of different brokers so you can get a feel for how reliable their customer support is.
Explore our Top Rated Brokers!
Always do your own research before choosing a broker. Here are some of our favorite brokers to trade with:
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
