Because forex is an online industry it works virtually. Therefore, it is a difficult task for traders to know about the brokers because they are not physically available. It is a challenge for traders to know which is the best forex broker because billions of brokers are present in the industry from which tons of them enter the market each year. That is why the selection for the best forex broker becomes difficult especially for the newbies enter into the industry. Let’s see a guide to choose a best forex broker.
But don’t worry we are here to help you to find out the best forex brokers. Having appropriate knowledge about the forex brokers can help you out and no one can stop you to attain success in the trading industry. Below are some of the key features that must be always checked before selecting forex brokers.
1.Forex Broker Regulations
Many a time in online forex trading, many fraud brokers add a high level of skills and expertise to their profiles so that they get heavy traffic of traders. But in reality, they do not possess any broker services. their profile is fake with false websites and some good words to convince the traders.
Therefore, to ensure safe trading passage, the regulatory bodies are working worldwide. They have defined some rules that are needed to be followed before the selection of the brokers. Such as they must be connected any from the following agencies like;
- Financial Industry Regulatory Authority (USA)
- Financial Services Agency (Japan)
- Federal Financial Supervisory Authority (Germany)
- Australian Securities and Investments Commission (Australia)
2. Headquarter location
Also, try to find brokers physically worldwide who can give you trading facilities online. But always remember to search for the location of their headquarters because it is important to know about their physical existence.
For instance, mostly in the UK or the USA, the top-rated brokers are present. And they are connected to the regulatory bodies there.
On the other hand, India and other middle east countries have weak regulatory bodies which make regulations weaker for broker licensing in India.
3. Broker Trading Platform & Software
for the forex market and traders’ software and trading platform are two main keys for safe trading. Always check about the broker’s trade platforms and software. Sometimes, brokers have their software, and sometimes they use third-party platforms. The real brokers always provide a demo account to make it easy for you to practice before you start trading in real.
4. Forex Broker Deposit & Withdrawal method
Always check which with drawl method the broker such as whether he is using debit/credit card method, pay pal, or other payment methods. Sometimes the brokers have their payment methods as well.
5. Data Security
It is important to search the broker’s history and specifications cautiously. Because the forex account requires personal as well as financial information to access. If the broker is a fraud your information can get stolen. Anyone can hack your account if he has your account information.