In the incredibly lucrative and highly competitive forex market, picking a broker that suits both your at-home lifestyle and your personal trading habits can be the key to your success and the potential profitability of your trades. Given the news that the average trading volume on the forex market in 2016 was nearly $5.1 trillion, it should come as no surprise that, in recent years, there has been an increasing amount of forex brokers setting up shop – as such, making the process of sifting through the bad ones from the good an incredibly time consuming and difficult task.
In this blog post, therefore, we’re talking through 3 crucial things to consider before picking your forex broker, helping you to learn forex trading in the most informed way possible.
Review the trading platform
When it comes to trading on this digital market, activity occurs on the brokers’ trading platform. As a result, forex traders need to ensure that the platform they’re likely to use every day is up to scratch – meaning that it’s fit for purpose and, as such, is easy to use, visually appealing and has all the tools they’ll require to ensure that trades are entered and exited easily.
Therefore, before deciding on who you believe to be the best forex broker, make sure that their trading platform offers all the standard tools – such as a free newsfeed, charting and technical tools, as well as clear buy to sell buttons – as well as including a plethora of customisation tools in addition.
Research their customer service
As will all other industries, customer service really is key and is sure to play an imperative part in your daily forex operations. As a result, you need to make sure that you pick a broker that will remain easy to contact throughout your membership with them, as problems can arise at any point in your forex trading career.
It’s important to remember, therefore, that while their performance on executing trades will be a primary focus for you when picking your broker, their ability to tackle and deal with technical issues or problems with your account could ultimately impact potentially significant wins or losses. As such, don’t make the mistake of judging their customer service solely from your first encounter with them – instead, thoroughly researching what others have to say about them to ensure you’re properly looked after on your forex journey.
Analyse their security
Arguably the best way to trade forex is through an established and secure regulatory-compliant forex broker – making checking your potential new broker’s reputability status one of the most important things to consider, even before exploring their reviews and trading platform. This can be simply done by checking their accreditations either online or, for those based in the US, checking that they’re part of the National Futures Association.
So, before even thinking about investing your capital into a particular trading platform, ensure that your chosen broker is a qualified member of the regulatory body in your country.
It goes without saying that if you trust your forex broker, you’ll be more likely and able to develop and analyse your forex trading strategy – increasing the potential for success as a result. Our best advice is to do some thorough research into what the different brokers out there can offer you, as this will ultimately always work in your favour.
Are you just starting out in the world of forex trading? Let the experts here at Learn to Trade South Africa help you find your feet by taking advantage of one of our free forex workshops by signing up here!