Not many are aware of the fact that the forex market accounts for more than $4 trillion of traded value thereby making it a humongous financial market. The forex traders have no central marketplace trading the market and this is why they are careful about selecting a reliable forex broker who can help them navigate their trading activity.
Due to the fact that there are increasingly large numbers of forex brokers in the market, it is an overwhelming task to select the right one by cautiously navigating through the internet ads.
Factor #1: Security
The foremost characteristic that you should watch out for in a good forex broker is high level of security. Would you ever dream of handing over your hard-earned dollars to a person who later on turns out to be a fraudster? You’ll be rather happy enough to note that it is not too hard to check the credibility of a forex broker.
There are several regulatory agencies all over the globe that differentiate the good from the bad. The CFTC (Commodity Futures Trading Commission) and the NFA (National Futures Association) are the 2 regulatory agencies.
Factor #2: Withdrawal and deposit
Trustworthy and reliable forex brokers will let you withdraw your earnings and deposit your money without going through any kind of hassles. Usually brokers have no specific reason to unnecessary screw your withdrawal and deposit process as the sole reason behind they holding your funds is to accelerate the process of trading.
As he holds your funds to ease off the trading process, he should ensure that the despite and withdrawal process is also smooth and speedy.
Factor #3: Costs of transaction
Regardless of whether you like it or not, you will always have to come across transaction costs. Whenever you enter a trade, you’ll either have to pay for a commission or a spread and hence it becomes even more natural to watch out for the cheapest and the most affordable rates.
There are times when you might have to compromise low transaction costs for obtaining a more trustworthy broker. In short, you need to know the art of striking the right balance between low costs of transaction and security of the broker.
Factor #4: Platform of trading
When it comes to forex trading online, major part of the trading activity takes place through the trading platform of the broker. Automatically it becomes imperative that the trading platform is not only stable but also user-friendly at the same time.
Whenever you watch out for a broker, make sure you check what his platform has to offer you. Should you use charting tools which are more user-friendly? Does the platform offer you news feeds?
Does the trading platform give you all details on what you may need in order to trade properly? These are few things you should check before choosing the platform.
So, whenever you’re eager to hire a forex broker, you should never hurry. A single mistake can cost you in terms of dollars. Keep in mind each of the above listed factors before choosing a reliable forex broker.