How to choose a trusted Forex broker? A question often arises on every trader who wants to enter the forex world, especially since many financial brokerage companies allow you to trade within the forex market through its electronic platform. This vast number creates more confusion than it provides solutions.
Dear reader, choosing which trusted forex broker to trade with should be based on sure foundations and rules. The matter is not randomly assigned, and this is because not all brokerage firms available to the user are trustworthy brokerage firms.
The foreign exchange market currently includes transactions of about $ 5 trillion in average value traded per trading day, making it the largest financial market in the world.
The main problem facing the forex market is the lack of a central market for it, and this forces traders to choose a trusted Forex broker that helps them perform the trading operations they want through it.
Due to the great demand on this market, there are many forex brokers, so it is typical to find brokerage firms climbing onto this market providing low services to their users to seize their money and obtain some material gains illegally.
This forces traders to carefully scrutinize the forex company they choose, not to be fooled by advertisements and false promises. Today, we will give you a set of tips to help you choose a forex company? Follow us.
How to choose a Trusted Forex Broker?
When deciding to choose the trusted forex broker for you, you should focus on several important matters presented in the following list, which we will explain in detail.
· Regulatory compliance.
· Broker account details and offers to the client.
· Currency pairs for trading.
· Customers service.
· Trading platform.
Regulatory compliance – the authorized body of the broker
What is meant here by regulatory compliance is the body to which the financial intermediation company you want to participate with, many countries of the world are now regulating the work of the financial intermediation companies in them and monitoring their position within the market to ensure that they provide a good user experience.
For example, in the United States, a foreign exchange broker must be a member of the National Futures Association (NFA). This entity works to protect the market from fraudulent brokers and ensure investors’ rights by imposing its control on brokers and obligating them to provide a good experience for their clients.
Also, brokerage firms in the United States are registered with the Commodity Futures Trading Commission (CFTC) as the Retail Futures Commission, an independent government agency regulating commodity futures and options markets in the United States, and offers protection to investors in the market from fraud. Manipulation and abusive practices related to the sale of commodities, financial futures, and options, strengthening futures markets, and open, competitive and financially sound options.
You are here not a requirement to deal with brokerage firms activated by these two entities, as each country has its regulatory bodies, so choose a brokerage firm that is activated by the regulating bodies in your country and holds licenses to practice its work within this market, to make sure that it is trustworthy, And that she can be held accountable in case she suffered any bad experience with her.
There are many things that fraudulent companies reveal to you before you fall into the trap of signing up with them, which we have discussed in previous articles.
Account details for each Forex broker and the offers they offer
Financial brokerage firms compete with each other in the services and advantages to those dealing with them. The goal is to provide a good customer experience, attract the largest number of clients they have, and when you want, how to choose a forex company? It would help if you compared the advantages offered by financial intermediation companies of all kinds.
Here are some of the different benefits from one trading account to another
Commissions and spreads.
Of course, the financial broker does not provide its services to you without a fee that he gets from you. This return is represented in the commissions and price differences that he imposes on you, which is normal, as everyone wants to invest and make money.
The idea here lies in the amount of those discounts that will be cut from you on every trade you do, do not be fooled if you find a financial broker saying that his commission is 0%.
There is also what is known as the spread, which is a commission that is imposed on the price difference, where when selling a financial instrument, it is charged on the difference between the bid and ask price, and it is considered one of the essential things that a financial broker benefits from its clients. The commission of the spread differs from a financial brokerage account. And to another, sometimes the broker may charge a specific percentage of the spread, and other times these ratios may be variable according to market fluctuations. Of course, if the spread widens, this will affect the profits that can be obtained from trading operations that you make in the forex market.
So, when you sign up to a brokerage company, you should know precisely about all the fees and commissions that will be deducted from you, and this is to make sure that you can bear them and that they will not affect your financial gains.
Mostly all forex account brokers put the possibility of opening accounts with a minimal initial deposit that may reach $ 50; of course, this amount may be desirable to traders, and it pays them to participate with these forex companies.
Accounts opened with minimal amounts are often scammed with Leverage, which in turn has many financial risks that ruin your account. So the next time you see an ad for a brokerage firm that convinces you that you can open an account with them with small sums, don’t be fooled.
Ease of deposits and withdrawals.
One of the most important features that should not be ignored when choosing a trusted Forex broker is the withdrawal and deposit features. To reassure a trusted Forex broker, you must be sure that it enables you to quickly deposit and withdraw your money at any time you want.
It is one of the most important techniques that brokerage firms rely on to attract their clients. It promises them to use financial leverages that increase their profits to double in participation with it. The percentage of those Leverage varies from one broker to another.
Financial Leverage amplifies the amount of capital through a loan granted by the broker; for example, if you reach $ 1000 in your account, you can, with a Leverage of 1/50, get the completion of trading deals of $ 50,000 even though you do not have this money.
Currency pairs offered for trading
In Forex, there is a vast number of currencies available for trading. However, in reality, the traded currencies and which have great potential for traders, are very much fewer than offered.
Some of the most popular currencies traded in the forex market are the US dollar / Japanese yen (USD / JPY), Euro / US dollar (EUR / USD), US dollar / Swiss franc (USD / CHF) and British pound / US dollar (GBP / USD). )).
Of course, the customer service provided by the trusted forex broker is essential, which should not be neglected to ensure its quality, and this is because the forex market is a 24-hour market, so customer support must be available at the broker at any time of the day to provide A seamless trading experience.
Be aware of the idea of the answering machine, as some mediation companies convince their clients that customer service is available 24 hours a day. Simultaneously, the one who answers, in the beginning, is an automated respondent and asks you to wait for a response to you; in fact, this is a waste of time.
Also, customer service varies from one brokerage firm to another. Choose a brokerage firm that offers seamless options to communicate with customer service through live chat or phone calls.
The trading platform offered by the forex broker
The trading platform is the investor’s gateway to the markets. Of course, the trading platforms differ according to the different brokerage firms that are relied upon, so in this case, you must make sure that the brokerage firms that they offer are smooth, easy to use, and uncomplicated that enables you to deal with them quickly, and get the tasks done You want them in a matter of seconds.
A good platform offers you the ability to conclude many sales orders and buy with one click. It provides you with technical and fundamental analysis tools directly in front of you. It contains a (panic) button that enables you to close all open positions with one click to avoid more losses at crucial moments.
Please do not underestimate this matter; complex bad platforms may lead you to make the wrong steps that cost you significant financial losses, such as unintentionally adding to a position instead of closing it or selling when you intended to buy.
How do you choose a trusted forex broker? You should know that if you trust the forex company you deal with, this will make you run a more professional trade and allow you to devote more time to taking care of your trading, its analysis processes, and developing your forex strategies instead of wasting time on brokerage problems with a company.