The number of brokers has risen over the years and making a sound decision can be a challenge. Read on to learn more about choosing a good forex trading broker.
When you are certain that you want to dive into forex trading, it is imperative that you find a reputable forex broker. Primarily, a broker offers you access to a trading platform where the trades are executed. This article seeks to help you choose the right broker and thrive in FX trading.
A trading platform is your link to the money market. Therefore, it is the responsibility of a forex trading broker to ensure that both trading software and platforms are easy to use for their clients. Most importantly, it must be integrated with competent analysis tools able to handle both fundamental and technical analysis. It is important that you choose a broker with a platform that gives you an easy time to start and exit trades. To make things better, a platform should have an emergency exit button that helps you terminate all trades in one click and this is quite important when the markets show high volatility.
When a platform is not designed in the right way, it is easy to make expensive mistakes such as adding to an active position when you intended to close it. At the same time, you can initiate a long trade instead of a short one. While these may seem like small mistakes, they can lead to huge losses and emotional stress. It is also important to choose a platform that can be easily customized as well as making automatic trades.
Regulatory compliance is very important when you want to choose a forex trading broker. A good FX broker should be registered with NFA which is a self-regulatory organization focusing on features market in the US. Its main purpose is to draft rules and regulations that help protect this industry as well as the stakeholders. At the same time, it is charged with the responsibility of making sure that each member is compliant with industry best practices.
On the other hand, being registered with the CFTC makes sure that the public is safe from manipulation. A registered broker is obligated to follow the regulations stipulated by the CFTC with regard to trading in financial options. This organization also seeks to stimulate competitive, open and best option markets. To determine if a forex trading broker is registered, you need to look at their website and find out if they are stating this fact openly. Otherwise, you shouldn’t be deceived by fancy websites since they are not proof of regulatory compliance.
Consider the customer service when choosing a forex trading broker
Forex trading happens around the clock and it is important that your broker be available to provide support when needed. You need to have access to live customer support representatives as opposed to Chatbots that answer common queries. To determine if a broker has a committed customer support department, just give them a call and observe their performance with regard to wait time and proficiency with complicated queries.
In addition, this will give you a clue about how your issues will be handled when the need arises. Besides, no one wants to wait for hours before getting a solution to a problem that can cost you an entire investment.