Right after the basics of forex trading, the next question a beginner should as is “which is the best forex broker?” There are many of them out there with mouth watery offers, but all that glitters is not gold. Here are some things a trader should be on the lookout for when searching for what forex broker that is best to sign up with.
Before going into the facts on how to find the best forex broker to trade with, it is important to understand the function of a broker in trading currencies. A forex broker is charged basically with the responsibility of providing traders with access to the forex market. He serves as an intermediary between the buyers and sellers, and takes a commission as service charge for such services.
CHARACTERISTICS OF THE BEST FOREX BROKERS
- LICENCED BY A REGULATORY BODY:
One of the most important things to consider before choosing a broker is registration with a reputable regulatory body. There are many brokers out in the market with no form of oversight. Working with such brokers can be risky as they might be scammers.
- CUSTOMER SERVICE:
The best forex brokers are always out to offer their customers the best customer service they can. This is to win that client against their competitors. Any broker that is not eager to help even a new trader that knows not so much about the forex market is not to be reckoned with. Quality of customer service is always important in matters like this.
- HELPFUL TRADING OPPORTUNITES:
All that a broker is concerned with is to provide access to the forex market through a trading platform, but there is more to it than just that. Many brokers go the extra mile to provide their clients with trading tools that can help them make good trade decisions and in effect make good profits. Their trading instruments are, in most cases, given out for free as a compliment.
- LOW SPREAD:
A forex spread is the different between how much “trader A” wants to sell a currency pair and how much “trader B” wishes to buy that commodity. This goes to the broker as some sort of service charge. When the spread is high, the broker may be taking more than requires. Low spread is one trait of the best of forex brokers.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.