When it comes to choosing a new forex broker or finding the best forex trader for your current circumstances then there are two paths you can take: 1) the easy way or 2) the professional way. As you can probably tell, the former will require less work and research, and the latter more effort and research.
Whether you’re an experienced forex trader looking for a new broker or newcomer to the world of forex trading, then we would always advise you to take the more professional route. Why? Simply because the more information you have at your fingertips, the better and more informed decisions you can make. In today’s article, we list the top three steps that you must take when trying to choose a new broker and then break them down into manageable chunks so you can action them with ease.
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Step 1: What do you want from forex trading?
Although this may seem like a very simple and straightforward question, it is actually far more complicated than it first appears and will inevitably require asking yourself even more questions! It is vital that you do this, though, as without doing so, you may make the wrong choice when selecting a broker. Here are just a few examples of some of the questions you should be asking yourself:
Which currency pairs do you want to trade?
Which spread is best suited to you?
How much money do you have to invest?
How much leverage would you need?
Will you require a specific platform?
What are your thoughts on scalping, hedging and trailing stops?
How do you want to receive your funds?
How much in fees are you willing to pay?
These are just a few examples, but the most important we feel. Write down the answers and always discuss them with every broker you speak to.
Step 2: Find and then analyse potential brokers
Locating potential brokers isn’t a difficult task; however, analysing them once you’ve found them is a significant step. The first thing you must do is visit their website. When you first land on their homepage head straight for the contact page and see what information it is displayed. What you’re looking for here is a physical address - and one that you can check is legitimate (use Google maps or visit the area if you are close). If you don’t see an address, then that should set off alarm bells in your head and is never a good sign. Ensure that they also have a landline phone number and a domain-based email address (not a free one, e.g. Hotmail, Gmail, etc…). If they pass that test, then look at the construction of the website. Does it look professional? Does it work well? Is it easy to navigate? Finally, you must check that the broker is registered and licensed to be a broker. Each country has a regulatory body (sometimes more than one) which brokers must register with to be allowed to trade legally. In the USA the authorities are the NFA and the CFTC.
Step 3: Read reviews
For this step, Google is your friend. All you need to do is type in the company name and the word ‘review’ after it, and you’ll hopefully be inundated with reviews about that particulate broker. Read the reviews to get a feel of the broker, and if most of their clients are happy with the services that they have been provided with.
We hope you found this helpful! If you’re seeking more information on finding the best forex trading platform, please visit the website at the top of the page.