There are plenty of Forex trade websites which tout about the exclusivity of their services and features. However, if one looks from the logical point of view, only a few can be as good as their claim. So the ordeal here is finding that one good site/broker which suits their style of trading.
One just cannot believe claims holding for brokerage firms. Rather, the rational way of going about it would be considering their own trade expectations and compare it with the conveniences a broker offers.
To help them pick their suitable one brokerage company, this post discusses all those crucial nitty-gritties. Read efficaciously!
• Start off by checking their reputation:
First and foremost, a trader needs to affirm the reputation of a broker. By that it means checking how many years they have been in this line of service. On an average, those brokers or FX sites which have 10-12 years of experience are known to be quality-proven ones. Their sustainability for so many years is a testimony of their success.
Those looking for a reliable trading website should look into this matter seriously. It’s a question of their hard-earned money and for that, it is pivotal to choose one with a genuine record in this venture.
• Next up is their Regulation:
Forex trade websites/brokers have to follow strident rules and conditions laid down by regulatory bodies. Forex as a market is decentralized in nature and henceforth, there is a high probability of fraudulent activities.
To ensure that investor’s money doesn't go into the hands or malware activists, governments of different countries mandate brokers/FX sites to possess regulations as an identification of their authenticity. Various regulatory bodies exist in different countries.
In the US- Brokers/sites for Forex Trading need to abide regulations set by US Securities and Exchange Commission
Whereas in the UK or say Australia- brokers need Financial Industry Regulatory Authority/ Australian Securities and Investment Commission respectively!
Depending on whichever country one resides, it’s important to check whether a particular broker functions under that nation’s regulatory body. If they do, then go for it and if they don’t, then skip to another one.
• Suave deposits and withdrawals:
The next tip for newbies is to check if whether a broker facilitates suave deposits and equally smooth withdrawals. It’s a common thing for traders to find difficulty withdrawing their own money from their broker.
Unnecessarily delaying procedures/ preposterous excuses and plenty of headaches, these are something many try to avoid. So ask the broker about all these aspects. If no sufficing answers come, then continue looking.
Few more pointers to remember when choosing:
• Check if the broker is offering MT4/MT5 trading terminal.
• Enquire about the transparency and authenticity of the data they provide.
• Affirm if customization of the platform as per language and tools for your requirement.
• If one gets the option to trade with every Forex Major and other currency pairs.
• Also about some of their attractive trader oriented bonuses.
These are some of the crucial tips which every newbie should take into account when choosing one good from the many Forex trade websites/brokers around.
Use the knowledge and spread the knowledge. Happy Trading!
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.