The forex market accounts to trade for more than $5 trillion every day. In such a massive decentralized market, traders need to select a forex broker to help them conduct their trading activities. Over the last decade, the number of forex brokers has significantly increased and they all claim to offer quality service to their customer. However, the truth is not all the brokers who claim to be good are so rather they are only interested in making profits at the expense of the customers. And this is the very reason a trader should consider all the important factors before choosing a broker just like in a game of chess where all pieces are taken into consideration before making a move.
Before venturing into the forex market, a trader needs to open a trading account with Forex broker. And so before sailing into the wide ocean of trading, we will tell some factors to consider before choosing a broker.
Proper Regulation: Regulation is one the most important factor while choosing a broker which most of the people neglect. Proper regulation helps ensure that your broker is adequately capitalized in the event of trading losses keeps your funds in secure and segregated accounts and maintains fair dealing practices. This way you will be sure that your hard-earned cash are in safe hands.
Security of your information: Setting up a trading account with a forex broker means you will be sharing a lot of confidential information with him. So it is imperative that the broker is trustworthy so that your information is not hacked, stolen or at stake by any chance which can lead to identity theft. A trustworthy broker will ensure reliable internet security to keep your information safe.
Consider trading style: The trading style that you implement will determine the type of broker you attract. So make sure that your brokers trading style matches with yours. For a short time trader, he will need someone who can provide him currency account and also allows scalping. While for a long-time trader, he will be less concerned with the speed of the market. So make close attention to brokers’ policies and rates before choosing them.
Quality customer service rendered: It is of paramount importance that a trader chooses a broker who renders quality service. This will make it easy for the trader while opening an account, help you understand how forex works and also suggest the right software. So choose the broker who provides excellent service to all customers.
Provides trading tools and materials: It is very important to know what kind of educational tools and materials are provided by the broker. Many reputable brokers provide educational materials which include videos, articles, webinars etc. However, the quality of these materials varies from broker to broker and that’s why it is important to be wise while choosing a broker.