Choosing The Right Broker
As we talked about why forex broker plays a huge role in our previous sharing, today we are going to talk about ‘how to choose the right broker’.
Choosing a doozy broker for your very first trading account is actually your biggest trade as a beginner trader.
The effort to distinguish between a reliable and fraudulent broker can be a major headache but it will be worth it. Imagine you’ve picked a fraudulent broker and fund your account with your savings. The ending will be miserable and you won’t like it. So, to save the trouble, we suggest every beginner traders conduct their due diligence to prevent them from making a wrong trade right from the start.
Choosing the right broker can be complicated. So we listed out a few aspects you have to take note before opening your trader account.
REGULATION/SECURITY
First and foremost, check the broker’s regulator. Make sure they are regulated by legitimate regulators from Financial Conduct Authority (FCA) (United Kingdom) or Cyprus Securities and Exchange Commission (CySec) (Cyprus). Obtaining licenses from these countries can increase the credibility and reliability of the broker as they have the strictest regulation terms among others. Authoritative regulators supervise and regulate brokers under its supervision to ensure their compliance with the laws governing their operations to prevent fraudulent effectively.
EXECUTION & TRADING PLATFORM
Timing is everything in forex trading. Broker who offers fast execution can level up your possibility in gaining and prevent you from missing the perfect timing to sell off your currencies.
The exact price of the currencies you want to sell and when you finally executed your order might vary thus if you are making a bigger trade, you might lose a significant amount of money.
But let’s not forget that fast execution speed means nothing when your broker does not have a good trading platform. A user-friendly platform can play a vital role in your trading career and it can even help you to learn faster if you are a newbie. Make sure it provides free market news and daily analysis that can help you trade better so you can save your time and get everything you need in one shot.
WITHDRAWALS
We are not going to lie but one of the most common problems that traders face is withdrawal issue. You can always read complaints about withdrawal difficulties online. Hence, to prevent you from falling into this miserable mess, always make sure the broker you choose has a good reputation on withdrawal efficiency. A good broker will always make their withdrawal process hassle-free because there is really no reason to hold your fund and make it hard for you to enjoy your profit.
LIQUIDITY PROVIDER
What does high liquidity in broker mean? It means they are resilient and partnering with various central banks around the globe that can ensure you to get the best price to trade and gain more. They act as the buyer and the seller of your currencies. Liquidity provider offers greater price stability and smaller risk to their traders.
SEGREGATED FUND
Another aspect that is crucial when you are picking the right broker is the segregated fund policy. Segregated fund policy means the broker does not own your fund when you are trading using their platform. Your funds are fully segregated from their own asset and distributed across world-renowned independent banks. Having a policy like this is like an extra bonus to trader because it ensures a safer way to secure their trading fund and giving them peace of mind.
CUSTOMER SUPPORT
Everyone loves a good customer support. We need people to help us solve problems that we can’t solve on our own effectively… and instantly. No brokers will be perfect, not even the one you have decided to register with but if they have an effective and quick-respond customer support team, it can help you in the long run. The competence of the broker’s customer support team can easily show how much they care about their clients and how passionate they are in helping traders who faced technical issues in trading.
Above are the four major aspects you should be focusing on when you’re finding the right forex broker for yourself. Having a good broker’s platform to trade can increase your confidence to trade and your odds of success in this competitive forex market. Make sure you made the right choice!
Register with us today: https://www.tfxi.com/applications/create
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