Three tips on choosing your first Forex broker

Check for Financial Regulatory Compliance

Most countries have national financial professionals associations and governmental regulatory bodies that accredit brokers. To keep your money and potential profits safe, the first thing to do when considering any brokers is to look for their regulatory compliance data. For example, American brokers should be members of the National Futures Association and post a member number on their websites. According to Mr. Belogour, registration with the Commodity Futures Trading Commission is also a must for US-based brokers.

If you ignore this advice, you are likely to run into scam brokers and become a fraud victim. Remember that a professional designed website and round-the-clock online support do not guarantee you are dealing with a reliable broker. Glowing investor reviews you find online can be faked, but registration with national regulatory institutions is a sign of a law-abiding and trustworthy broker.

Read the Fine Print on Fees and Commissions

With regulatory considerations out of the way, Pavel Belogour suggests you pay attention to the broker’s fee structure. It should be straightforward, without hidden commissions and restrictive limits. Online brokers offer a variety of accounts with minimal initial deposits as low as $50 to accommodate inexperienced traders.

Leverage amount extending your margin account provides a chance for larger earnings, but can also be a fast way to lose everything in the hands of an inexperienced trader. Withdrawal limits should be minimal to ensure you can get your hands on the earnings quickly, and the variety of withdrawal options should provide a chance to receive money via wire transfer, PayPal, or by check.

Test the Technical Side of Trading

While not as crucial to your earnings as the first two tips, the feature set of the trading platform your broker uses can make your trading life much easier or harder. Paul Belogour suggests you start with currency pairs on offer and ensure they meet your requirements.

Available trading platforms are also an important consideration, as they can possess useful features, such as price charts and other analytical tools, to help you make investment decisions. The interface should be user-friendly and intuitive with the clear “Buy” and “Sell” options that enable you to close deals quickly and hassle-free. Otherwise, in a period of extreme volatility, new investors may panic and miss the chance to make a significant profit because of a confusing trading dashboard. Demo accounts and free trials are there to help you get acquainted with the trading platform and decide whether you will be comfortable using it in the long run.

A helpful human IT support team is another requisite for your successful entry into the trading world. Most newcomer investors have dozens of questions and need regular directions and advice from their brokers. You should be able to reach them via email, live chat, or phone at any time. Chatbots are not the best option for new investors, as they soon become frustrating instead of helping to solve the problem quickly, as a human manager would. Reach out to the broker’s support team before signing up for an account to make sure you will get the much-needed help when you start trading.

0 0 vote
Article Rating