There are many brokers offering traders services they may need to trade the forex market, so much so that a lot of traders get confused as to which broker to go with. It is not new to see brokers who present prospective clients with interesting free offers, just to entice them and make them want to register with them. As a matter of fact, all brokers do that, it is not a bad game plan; it is just a way of surviving the forex market where there is fierce competition among brokers. It is very understandable why traders may be confused about what broker to chose. That is what this article is all about; how a trader can find the right broker to work with, and not just any kind of broker, but the best rated forex brokers in the forex market.
WHO IS A FOREX BROKER?
A forex broker is an individual or a brokerage firm that provide forex traders with access to the forex market. That is to say that without a forex brokers, it is practically not possible for traders to access the forex market. As they are charged with the responsibility of giving traders access to a trading platform, they tend to make their money from these traders as well. They make their money in any of the following two ways
1. Through the bid ask spread of a currency pair
2. Through service charge for each transaction carried out by a trader
WHAT MAKES A BROKER TOP RATED
There have been cases in the forex market about fraudulent brokers who scammed traders and are nowhere to be found today. They were not answerable to any regulatory body of authority, so some of them were able to cover their tracks as they made away with their clients’ money. To avoid this, traders should make sure the brokers they are considering have the following qualities
1. REGISTERATION WITH AN IDENTIFIED REGULATORY BODY:
Seeing that forex trading is an online thing, and traders have no physical contact with their clients, it can be difficult for a trader to trust a broker with their money. To avoid this, regulatory bodies were set up in different locations and countries. These bodies serve as the control over brokers. Traders should make sure their brokers are registered to such bodies before trusting them.
2. THE BROKER’S PROFILE:
Carry out some research on the profile of the broker you may want to register with. Check out the kind of services offered, the rates and charges, the spread, and so on. How long they have been in business should also matter in this case.
3. BROKER’S REVIEWS AND EFFICIENCY:
Also look out for what others are saying about the capacity of a broker you may be considering. Honest reviews by real people like you and I can go a long way to save a trader of a lot of stress.
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.