The author is an expert in the field of multi-asset trading.
How to Choose a Forex Broker (in 5 Easy Steps)
The foreign exchange market is the largest, most liquid market in the world, and allows anyone to participate in it – qualities that attract millions of traders every day. But to enter this huge decentralized market, traders must enlist the help of a forex broker, but choosing between the hundreds of available options and competitive offers can be a daunting first task. Below are five important points to consider when choosing who to trade with, and who to avoid.
1. Authorisation and Regulation
A reputable broker will be authorised and regulated by a relevant financial body in their region of operation and beyond. No matter how professional they may look, stay far away from brokers who do not have any authorisation or regulation listed on their website, and even then, some regulatory bodies are stricter than others, so do your research before committing. Equiti is authorised and regulated by the Jordan Securities Commission and is compliant with strict financial regulations.
A broker that’s compliant with financial regulations will ensure the safety of client deposits and maintain integrity in all financial transactions. There are many unscrupulous forex brokers out there, and you can’t rely on them to keep you safe if things go wrong, that’s why you should only open an account with a broker that is prominently regulated.
2. Commissions, Spreads, and Leverage
Every forex broker will have their own different offers on things such as leverage, commissions, spreads, initial deposits and ease of withdrawals. Whether you’re looking for the largest possible leverage, or the lowest commission and tight average spreads, make sure you read the fine details to ensure that you get the best deal. Also pay attention to the ease of deposits and withdrawals, as your money is of no use to you if you can’t get to it.
Equiti offers easy deposits and withdrawals and competitive account types for every type of forex trader. Compare them for yourself > http://www.equiti.com/accounts/compare-our-accounts/
3. Number and Types of Currency Pairs
Does the broker only offer the “majors” and nothing else? Do they offer a seemingly huge number of obscure pairs that almost nobody actually trades on a daily basis and thus have no liquidity? Most importantly do they offer the pairs that you’re most interested in? These are the questions you need to consider when judging the broker’s offerings. Equiti gives you access to 61 currency pairs, including all the majors and many minors and exotics.
You can learn more about currency pair types and which ones to trade in our short guide.
4. Trading Platform
The trading platform is your direct connection to the markets, and the faster and better it is the faster and better you are. Is the platform easy-to-use, well designed, and rich in features and technical capabilities? You should also consider customization options, order types, automated trading, alerts, and other helpful tools. What sort of research and analysis can you do on it? And does it work on mobile or tablet?
Equiti offers the state-of-the-art MetaTrader 4 platform to its clients, which features all of the above and more.
5. Customer Service and Technical Support
The forex market operates 24 hours a day, 5 days a week, and you need a broker that’s by your side the entire time. Make sure that your broker offers you client support whenever you need it. Many will go above and beyond to help you open an account, and disappear once you need them later. Is there a phone number available or a live-chat option on their website? How responsive are they to your inquiries and problems? If you need something, ask.
Equiti offers 24/5 live support and a dedicated account manager, so you always feel at ease.
The less time you spend worrying about your broker, the more time you can spend concentrating on what matters most – trading. The forex market is competitive and there is no shortage of brokers promising you the world. Remember, if it’s too good to be true, it probably is. So do your due diligence before committing to any single broker and potentially making the wrong choice. And remember to make use of a free demo account to try everything out. Happy trading!