From traders, to forex service providers, banks, fund managers, hosting services as well as Forex Brokers.
Due to more and more people dabbling into the forex market, the competition amongst forex brokers is ever increasing.
In the old days, only a handful of people could tradee forex but due to advancement in technology, anyone withb a laptop and is 21 years of age can trade forex from almost anywhere in the world as long as they can register with a forex broker no matter local or overseas.
That is why selecting a forex broker is very important because the broker that you select might not be in the same country as you are.
Today, I want to share with your 5 Tips that can help you select a good Forex Broker.
1. Regulatory Compliance
When you go on the web in search of a forex broker, do not get too excited when you see a fancy website full of flashy images because that broker might not have the proper regulation.
What you need to have is a forex broker that is regulated.
For instance, he broker that I am using is called FX Primus and it is regulated by FSC, (Financial Services Commision).
2. Account Details
This refers to the type of account that they offer to their clients.
It can be micro accounts, standard account or ECN account etc.
It is important also to know the leverage and margin provided by the forex broker,
There are lot of leverage options in forex brokers.
Starting from 50:1 all the way to 500:1.
Leverage is like a double edge sword.
I can work to your advantage but it can also hurt you at the same time.
Lastly, there is the spread and commision.
This is how forex brokers make their money, through spread and commisions.
Some brokers will have higher spread than other brokers so you need to check out in detail when selecting your broker.
3. Types Of Currency Pairs You can Trade.
In the forex market, there is a wide range of currencies that you can trade but forex brokers might not provide services for all of them.
They often focus on major currencies and provide currency pairs like EUR-USD, GBP-USD and so on.
Some brokers will provide a huge selection of currency pairs to trade but it really depend on what the trade want to trade.
4. Customer Service
Another important aspect to think and consider when you select a forex broker is their customer service.
This is very important because you wan to get help or solve a problem with you account in the shortest time possible.
Only select forex brokers that provide 24/7 customer service,
With this, you can chat with their customer support anytime in the day.
So when you have an issue that you need solving, you can get answers quickly.
5. Trading Platform
This is also an important factor to think about when selecting your broker.
Different brokers might provide different trading platform.
But the most common platform that is used nowadays is the MT4 platfom.
It is not a must for you to use this platform but it is the most used platform by traders out there,
Therefore, you need to select a broker that can provide you with the type of platform that you want to use.
There you have it, 5 tips that can help you select a good forex broker.
I wish you all the success in your forex trading journey...
Yours sincerely,
Check Out my other posts here- My Justinnation
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