How to find a trustworthy forex broker

How to find a trustworthy forex broker

When you are starting out as a forex trader you always need to be well educated on how to find a trustworthy forex broker, because you will need one. However, even though forex brokers are quite helpful, it can be quite difficult to find a reliable broker, therefore, very risky. As forex trading is a very competitive market everyone is trying to make money and benefit as much as possible so not all brokers can be trusted. So, you need to make sure you do enough research to be able to identify a reputable brokerage or broker that will meet your needs. That being said, this article will give you some tips on how to find a trustworthy forex broker.

Safety first

One of the first things you definitely need to look for in a forex broker is a solid security system. A smart forex trader would not leave thousands of dollars in the hands of a broker that only claims to be legit, and safe and all the good stuff, rather you would need proof as well as reliable reviews. Moreover, make sure that before you so much as consider trusting your money with any broker, you have checked that it is a member of any known known regulatory body.

Deposits and withdrawals

The deposit and withdrawal process is very important when it comes to forex trading, therefore you need to make sure that you choose a broker that will allow you to deposit your funds and withdraw your earnings with ease. Brokers that make it hard for you to deposit and withdraw, raise red flags because they don’t really need to as the only reason, they withhold your funds at any point is to facilitate trading.

The Brokers trading Platform

The brokers’ trading platform is where the majority of the trading activity takes place when it comes to forex trading. Therefore, one thing to look for in a forex broker would be a stable and user-friendly trading platform. Go even further to check what other features the platform has to offer such as adequate data to make your trading process easier, easy to use charting tools as well as free news feeds. Such features will be very helpful to any forex trader and thus these would be important things to check off your list. Just to clarify on some of the good and bad platform traits as a matter of opinion;

A good trading platform has clear buy and sell buttons, and some really advanced one will also have a ‘panic’ button used to close all open positions at once. A badly designed interface, however, can result in order entry mistakes that will cost you; mistakes like adding to a position by mistake instead of closing it. Other features to consider are automated trading options, order entry types, trading alerts and back testing and also customisation options.

Transaction costs

Transaction costs are inevitable it doesn’t matter if you are an expert trader or a beginner you will always come across transaction costs whether you like it or not. It makes sense to look for cheap rates and affordable costs because each time you enter a trade you must pay for the spread or a commission. Nevertheless, there may come a time where you need to sacrifice those low transaction fees for the reliability of a broker or other important features that a broker may have. If you are able to find a balance between low transaction fees and a solid security system, all in one broker then you are good to go. Also identify whether you need tight spread for your trading so that you may review your available options.

Customer service

The truth of the matter is, you won’t find one perfect broker and problems will arise one way or the other in this forex trading world, therefore, you are better of finding yourself a broker that you can easily and quickly reach when you face any issues. How brokers manage accounts as well as technical support issues is just as vital as their ability to execute trades efficiently. So, in a nutshell, one great tip on how to find a trustworthy forex broker is; do not overlook customer support as something you look for in a broker, as it is of the utmost importance.

Final thoughts

Finding a trustworthy broker is not easy, but it is something that has to be done. Whether you are a pro or a beginner at some point you will need a broker by your side as forex trading is a very competitive industry. Therefore, always ask yourself the necessary questions and the broker that answers all the question the best is probably the one you should go for. I hope these tips have helped you.

Good Luck