For any who wishes to become a forex trader, choosing a trusted forex broker is one of the essential steps you need to take. Why so? Because it is via the broker’s platform only via which you will be executing trades. You can check the reliability of a forex broker by checking their trading conditions as well as minimum deposit requirements. Search the forex market diligently, especially if you know nothing about how forex trading works. However, this search process can be quite daunting, particularly if you don’t know what you should be looking for. Thus, in order to make everything easier for you, we have presented some tips that you can follow while searching for a trusted forex broker.
Your Trading Goals
Make a list of your trading objectives. When you know exactly what you want to achieve in trading, it will be easier for you to find a broker who offers features that match your trading goals perfectly.
Visit the Forex Broker’s Website
When you have a list of trading objectives in your hand, you can then start searching about the broker by visiting their website. You can go through the terms and conditions mentioned on their website. Along with this, browse through their forex trading rules and policies to get a better understanding. All this will help you get an idea of how transparent the broker is in their operations.
Regulation is yet another factor that you need to consider. If the broker is regulated by a top-tier regulatory body, you can get peace of mind if there is someone supervising the broker’s activities. It is never recommended that you sign up with a broker who is unregulated and not monitored by a credible regulatory authority.
How To Determine If The Broker Is Regulated Or Not?
- Search the forex website for their license number as well as the name of the regulator who supervises their activities.
- Check the regulatory body’s website to verify if the brokerage is actually licensed and regulated or not.
Furthermore, a trusted forex broker always has a physical address available on their website. You can check out the Contact Page to ensure they are operating from a registered office address. If such information is not available, you can’t trust them completely because you will always have a fear in mind that the broker is hiding something. Even if you find other customer support available such as e-mail, live chat, contact number and more, while the physical address is missing, you must never trust them. It is also vital to check the account features to ensure that the broker’s website is user-friendly and functional.
Read Broker’s Reviews
Another thing you can do is check the forex reviews of a few brokers that you find trustworthy. However, it is not possible to go through each and every review available online. Thus, you can cross-verify the broker’s reliability through the following:
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- Checking the number of years the broker has been in operation.
- Checking the regulatory authorities under whose surveillance the broker is currently.
- Going through the range of tradable assets the broker offers.
- Checking the possibility of withdrawal denials or profit cancellations (if any).
- Some other factors that can help you make the right decision when choosing a forex broker are their reputation, transparency in operations and easy deposit and withdrawal of money.
- Ensure that the broker offers stellar customer support.
- Always read the broker’s terms and conditions and try to comprehend them thoroughly before you sign up with them. While doing this, talk to the broker’s customer support team to know about information which you should know about but which is missing on their website.
Why Deal With A Trusted Forex Broker?
Here are some of the major reasons why you must work with a regulated and trusted forex broker.
To Protect Yourself From Frauds
Some of the common fraud types associated with foreign exchange brokers are high commissions, wide spreads, restrictions on withdrawals and hidden terms and conditions. On the other hand, a reliable and regulated forex broker will always ensure you get compensated in the event he/she goes bankrupt.
Segregation Of Funds
Regulated brokers are required to keep the client’s funds as well as the company’s funds in separate accounts. This ensures easy and real-time withdrawal of funds.