There are many Forex brokers around today, and a newbie needs to be very careful when registering an account with any of them.
They all claim to be the best, but studies have shown that not all of them can be trusted for top quality Forex trading experience.
The number of Forex brokers is increasing by the day, and you may have to sift through quite a lot of them before you can get a good and reliable one.
You also need to be cautious when making your selection. In this write-up, you will be given a couple of tips to consider when choosing a Forex broker.
When selecting a Forex broker, find out if they are compliant with the required regulations.
In Europe, brokers will have to comply with the ESMA guidelines. ESMA stands for European Securities and Markets Authority.
ESMA focuses on the protection of the retail customer. Thanks to the leverage, many customers have lost money. ESMA has imposed new maximum leverages per product type.
The levers now run from 1:2 for cryptocurrencies to 1:30 for major currency pairs.
Check for the account offerings of the Forex broker before you register with the platform. Some of the account offerings to look out for are:
Check if the Forex broker gives you access to various forms of leverages. Leverage is a form of a loan given to margin account holders by the brokers. If you have an account size of $1,000, for example, a leverage of 1:50 allows you to hold a position of $50,000. This helps to increase the potential for profit. If care is not taken, the account of the trader can be described by the leverage. So, a trader should use leverage with caution.
The spread is the difference between the ask and bid prices of a particular currency pair. This represents the amount charged by the Forex broker on every trade triggered by the trader. The pip spread differs from one Forex broker to another. You should check what the broker in question demand as spread before you register with them. Do not register with that broker if the pip spread is too high.
In times past, you need a lot of money as an initial deposit with many Forex brokers. However, things have changed a bit these days. It is now possible to start trading Forex with a minimal initial deposit. Some brokers allow you to start live trading with $250. You can also start at just $100 on some other platforms. I have seen platforms that permit as little as $10 initial deposit. This may sound strange, but some brokers actually allow traders to deposit as low as $1 as initial deposits.
Before registering with a Forex broker, find out about the ease of deposits and withdrawals. Do they credit the amount deposited into your trading account on instantly or not? Do they support multiple deposit and withdrawal methods? Some of the commonly accepted means of deposit and withdrawals are PayPal, ACH and credit card. Some brokers also allow you to deposit and withdraw via wire transfer, personal check, business check or even bank check. You should also check the fees charged by the brokers on each method of deposit or withdrawal.
One other consideration when looking for the best Forex broker is the number of currency pairs offered by the broker. Check for the majors and minors and also check for the crosses.
Compared the numbers of major, minor and cross currency pairs offered by one platform to the number offered by another broker. The more, the merrier. A considerable number of currency pairs will increase your chance of making a profit from currency trading.
Most importantly, find out if the broker offers currency pairs that are of more importance to you.
Before you register with any Forex broker out there, find out about the quality of customer service offered by the platform.
The customer care channel must be available at all times 24 hours of the day, including weekends.
How easy is it to communicate with them? Do they provide live chat? How long does it take them to replay to emails and messages on live chat? Do they have a live person handling their live chat or it is an auto robotic attendant?
You can decipher the quality of their customer service by putting a call through to them before you register an account with them.
The customer care agents should be ready to educate you about the company details, regulations, leverages, spreads and other issues.
The number of years they have been in operation can equally suggest how qualitative the customer service can be, same for the size of their trade volume; the bigger brokers usually offer better execution and prices.
You should find out if the broker offers a demo account or not before you register with it. The demo account is beneficial and can teach you how to trade the Forex market profitably
Some Forex broker stands out from the rest, and they have proved themselves to be trustworthy over the years. Some of these brokers are highlighted below:
They are one of the best but do not offer MetaTrader platforms; they only offer a highly unique propriety platform.Despite that, the interface is easy to navigate with the charting area looking attractive and interactive. The platform and operation are also simplified for all categories of end users, including beginners.
The broker is regulated by the Financial Conduct Authority, CySEC and has more than six million end users.Its trust rating on Better Business Bureau is AAA. They have been around for more than ten years and hold the clients fund using segregated bank accounts. The bank account used is also Tier-1 bank accounts
The platform is safe, and clients deposits will never go missing.
It remains one of the highest rated platforms by Alexa and has been around for many years; it has been in business since 2007.It offers a demo account to the registered clients so that the latter can get familiarized with their trading platform before starting a real account.
It is a CFD broker and is regulated in South Africa and Cyprus.Playtech acquired the platform in 2016; Playtech is a company involved in gambling software development and listed on London Stock Exchange.Since its acquisition, the company has grown by leaps and bounds.
The above are some of the factors to consider when looking for the best Forex broker for beginners. A careful consideration of the features mentioned above will prevent a headache and brighten your chance of making a consistent profit in Forex trading.
Importantly, never register with a Forex broker that does not offer a free demo account, which will help you to understand the workings of the platform and also test your strategies before going into real trading.
If you have any questions or comments about the best Forex Broker for beginners, please do not hesitate toleave me a comment below. I always reply to my readers!
Your email address will not be published.Required fields are marked*
2018 All Rights Reserved Forex and Crypto Trading
This website is for informational purposes only and nothing contained on our website should be considered as investment advice.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.