Cashback Forex - Are you wondering what to consider to choose the best forex brokers ? No worry! We write this article to show you that there are some prominent things you need to take into consideration when it’s time for you to choose the best forex brokers.
Due to the fact that forex business is increasing competitively, choosing the best forex brokers can be very much confusing and dilemmatic. Particularly if you are just new to this kind of business, you will feel like you are entering a new world without a guidance on your both hands.
Hence, we have a great idea to share you what to consider to choose the best forex brokers. Check them all out below and get the deeper understanding so that you can go well with the forex business as you expect.
Why is security placed at the first list? Security is the first important factor in running on a business, particularly if the business is much dealing with the trading or money. In regards to forex trading, a good broker is required to have a high level of security, allowing him/her to hand over thousands of dollars to legit people.
Luckily, it is just easy to find out whether or not a forex broker is credible. This way, some regulatory agencies are available with the unquestionable trustworthy. Look at the list of the countries below along with the regulatory bodies:
- Canada: IIROC (Investment Information Regulatory Organization of Canada).
- France: AMF (Autorite des Merches Financiers)
- Germany: BaFIN (Bundesanstalt fur Finanzdienstleistungsaufsocht)
- Switzerland: SFBC (Swiss Federal Banking Commission)
- Australia: ASIC (Australian Securities and Investment Commission)
- United Kingdom: PRA (Prudential Regulation Authority) and FCA (Financial Conduct Authority)
- United States: NFA (National Futures Association) and CFTC (Commodity Futures Trading Commission)
So make sure your forex broker is a member the regulatory bodies in the list above just before you decided on investing your money in a broker. In the other world, if the broker you choose is not a member of the mentioned regulatory bodies, don’t take the risk.
Deposit and Withdrawal
The second thing to consider before finally choose a forex broker is the deposit and withdrawal. It is best described that a good broker will allow you to deposit as well as withdraw your money anytime freely. A forex broker doesn’t have a reason or even an authority to make your deposit and withdrawal hard. A broker is just a facilitator. He/she holds your money to facilitate your trading much easily. So when you want to get your profit, a broker must be well-cooperative. He/she has no reason to make it hard for you.
Thinking of what to consider to choose the best forex brokers, transaction cost is the next thing you must figure out. Remember, time is money. And for a trader, every single time is for trading. Spread and commission must be paid, thus, keep trading by looking for the most affordable and even the cheapest rates. Transaction cost is always there to wait for you no matter what kind of currency trade you are using. Sometimes, you need even to sacrifice the low transaction for another broker which seems more reliable. This way, you are much recommended to find the right balance between the low transaction cost and security.
Considering trading platform before choosing the best forex broker is also importantly necessary. It is due to the fact that nearly all of the trading activity occurs through the trading platform of the brokers. This means, the broker you choose must have a trading platform which is stable and easy to use.
So before you finally choose a broker, look at what kind of trading platform he/she uses. Is it user-friendly? Does it provide you with the trade related information?
Customer service is one of the crucial factors determining how good your broker is. We know there is no perfect broker ever. However, you can find one with the easily-contact customer service to provide you with the chance to consult when a problem arise. In fact, forex brokers are typically required to offer help on some account technical issues. This is aimed to support their performance on running the trades.
Hence, try to look at how kind the customer service of the broker especially during the account opening process and after the sales. In most cases, most of the forex brokers are kind in the first but not the after.
In relation to what to consider to choose the best forex brokers, execution is the last thing to take into consideration before you make a decision of which forex broker you choose for investing your money.
Dealing with the execution, your broker must fill you at the best price when you click the button “buy” or “sell”. For instance, along with the good and stable internet connection, you may click “buy” EUR/USD for 1.3000. Your broker must fill you at the price. It is very important to pay attention to the speed at which your orders get filled.
Now that you know a lot about what to consider to choose the best forex brokers, it is expected that you will be able to smartly choose the best forex broker you are interested in. Thus, you don’t have to worry about investing your money to a forex broker.