Forex Success Tips – How to Get or Choose a Best Forex Broker. Instead of giving you a list of brokers, I’d prefer telling you what you should be looking for when choosing a broker. The brokers you’ll read about here are mostly personal recommendations, which might or might not be what you personally are looking for.
You’ll have a better experience if you can decide for yourself what constitutes a good broker.
So, this is what I’m looking for in a broker:
The spread of a currency pair is the difference between the buying price and the selling price of that currency pair. Most forex brokers don’t work on a commission basis, and the spread is how the brokers actually earn money when traders make orders.
Different brokers will offer different spreads, and it’s worth looking into which brokers offer the lowest spreads on the currency pairs you’re planning to trade with the most often.
When you’re starting off with forex trading, you will deposit an amount on the broker’s account. It is therefore critical to know that your money is safe and the broker is regulated and backed by lending institutions. Your broker should be registered as a Futures Commission Merchant (FCM) and with the Commodity Futures Trading Commission (CFTC).
Check which support levels your forex broker offers. Are they only reachable during office hours or do they have 24/7 (or 24/5) support? Do you need to pay for support calls? If you have open order and something goes wrong, you want to know that there are people who can help you get things sorted.
Additionally, and this depends on what exactly how you want to trade, it might be useful to check your broker for the following features:
- Initial account deposit requirements.
- Do they allow expert advisors? Most brokers do, but some don’t allow it.
- Do they allow scalping? Again, only relevant if you plan to do so.
- Which software do they support? MT4? Or do you prefer cTrader / Ninjatrader? Something to keep in mind.
- Do they provide an API? This is mostly relevant only if you want to run custom automated trading strategies, but might still be useful to know up front.
Deposit and Withdrawal
Good FX brokers will allow you to deposit funds and withdraw your earnings hassle-free. Brokers really have no reason to make it hard for you to withdraw your profits because the only reason they hold your funds is to facilitate trading.
Your broker only holds your money to make trading easier so there is no reason for you to have a hard time getting the profits you have earned. Your broker should make sure that the withdrawal process is speedy and smooth.
In online forex trading, most trading activity happens through the brokers’ trading platform. This means that the trading platform of your broker must be user-friendly and stable.
When looking for a broker, always check what its trading platform has to offer.
Does it offer free news feed? How about easy-to-use technical and charting tools? Does it present you with all the information you will need to trade properly?