As the internet becomes more widely accessible, more and more brokers are offering their services online. It has opened up a whole new world of possibilities for how you trade forex, with some restrictions.
Thanks to customer reviews on different websites, it is easier to compare various offers, but you must ask questions before signing up. Forex brokers are businesses that connect traders, allowing them to trade against each other through electronic mediums. Because they are all competing for the same transaction fees from traders, they must offer enticing incentives to sign-up.
The first thing you will want to look out for is how this broker compares to others? Most sites have comparison charts that will show you the different services offered by their competitors. You must then find out what advantages this broker has to offer that others don’t. If they are charging less, offering bonuses or free trades, and their platform is more user-friendly, there are many factors to consider when looking for a new broker. However, to make your decision easier, here are some factors to take into account:
Reputation
The best place to start when searching for an online Forex broker is investigating their reputation. Many forex brokers have been around for years and established themselves as reliable businesses. Still, if someone has just appeared on the market, it may be worth doing further research before committing yourself to them. As a general rule: if they have been established for less than five years, their reputation is still unknown, and you should be cautious, but those who have been around for at least ten years usually offer an excellent service.
Currency pairs
The second thing to consider when choosing the right broker is what currency pairs they offer. There are over fifteen different currency pairs (including majors such as Euro/US-Dollar and Pound/US-Dollar; cross rates such as British Pound/Japanese Yen; and exotics such as Brazilian Real), which can complicate matters greatly if your trading strategy varies depending on the pair that you trade. It will also affect your choice of account type (see below). Look into which currency pairs your broker offers, which will affect how much liquidity it is for you to trade with.
Platform
The third thing that traders frequently take into consideration when choosing a broker is their platform. Having an advanced or proprietary platform will give you the upper hand. It allows you to have complete control over your trades and execute them faster than using one of the many MetaTrader platforms. Also, look at whether the platform is downloadable, especially if working on a laptop or portable device; or web-based, so you can access it from anywhere in the world. Good customer service should be standard across all brokers, but having support 24/7 by phone and email means that help is always at hand if needed, even during late-night trading sessions.
Customer service
Finding a broker with good customer support is vital when choosing your new business partner. Whether you have been trading for years or are just starting, brokers will always be available to help you through any problems you might encounter along the way. The best traders know how to use professional analysis, but everyone requires a helping hand from time to time. Because different customers have varying questions and issues, all brokers must have support in many languages to allow communication between them and their clients over the phone or email.
In addition to providing 24/7 assistance, brokers should also respond quickly when dealing with client queries. If they require more information from you to solve the issue at hand, it may lead to frustration, and you should consider looking for a new broker.
Account features
The final thing that many traders consider when choosing a broker is the kind of account that they are willing to offer them. They may not be offered in all cases, but it’s worth finding out if the broker has access to ECN or STP accounts, as these give traders the option to trade with a spread or commission-free. In addition to this, there are many account types, from mini accounts for those just starting to standard and ECN/STP accounts for professional traders.
In conclusion, there are many things to consider when choosing a new broker. You should always consider a good reputation, currency pairs available, and the platform they use. Having responsive customer support and can be contacted in several languages, as well as access to ECN accounts for professional traders, means you can sign up with peace of mind.
