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Top 7 Critical Things Before Choosing a Forex Broker

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At this point, the foreign exchange market is considered one of the largest capital markets. As you can understand, the competition is quite high, and there are a lot of risks. 

Trading in the forex market requires a lot of knowledge and experience. If you are new in this area, make sure to find a trustworthy forex broker who is able to maximize the trading results in a short time. 

Finding a forex broker can be pretty overwhelming in the beginning since you need to take into consideration a lot of details.

That’s what you need to look for in your Forex broker in the first place:

Security

The best MT4 broker should have a decent level of security, you can’t work with someone who claims they are legit. You don’t have to deal with this problem on your own though. You can find a lot of regulatory agencies that help their clients to check the forex brokers. 

So, before you decide to give any money to your broker, make sure that this person is a member of the regulatory bodies. 

Here you can find a list of regulatory bodies in countries all around the world:

United Kingdom: Prudential Regulation Authority and Financial Conduct Authority.

United States: Commodity Futures Trading Commission and National Futures Association.

Canada: Investment Information Regulatory Organization of Canada

France: Autorité des Marchés Financier.

Switzerland: Swiss Federal Banking Commission.

Australia: Australian Securities and Investment Commission.

Froxer broker types

Forex trading can allow you to trade with dealers and brokers at the same time. Brokers can only help you to process the orders using a computer system called the Non-Dealing Desk. 

As you can understand, brokers can also earn the commission ( a little percentage of the spread). The dealers work with a Dealing Desk (the system that processes these orders). 

Customer Service 

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Your broker should be able to offer you excellent customer service on a 24-hour basis. It is a basic thing since Forex can be traded at any time. To test the quality of customer service, try to contact the customer service support via different communication channels. They should be able to answer you as soon as possible. Ideally, they should offer a live chat service for their clients. 

Your brokers should be helpful and kind during the account opening process and after it as well.

Other than that, test their politeness and the quality of work. Be aware of what you are going to pay for!

Trading platform

When looking for a Forex broker, make sure to test their trading platform. It should be stable and user-friendly. The best platforms have charting and easy-to-use tools and free news feed. 

You will find a lot of brokers who take care of their platforms, so don’t waste your time on amateurs, no matter what they else they can offer you. 

Deposit and withdrawal methods

As a client, you need to be able to withdraw earnings and deposit your funds for free. 

Keep in mind, brokers can keep your money only while trading. It’s a broker’s responsibility to make sure the withdrawal process is smooth. 

Before you sign a contract, find out more about minimum deposit, withdrawal requirements, and the funding methods your broker offers. For example, most professionals accept PayPal, Bank Wire transfers, credit cards, and MoneyBookers. It will make it easier for you to withdraw your profits. 

Forex account types

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Another important thing is to learn about different account types. There are mini account, micro account, VIP account, and the standard ones. They all have different deposits and requirements. Your broker might not be able to offer you the account you need. So, before you choose a broker, make sure to determine the type of account you want. 

Forex bonuses

Every professional broker offers some bonuses to their clients. You might get up to 50% bonus on the first deposit and use it to your own benefit. Once you reach the specific trading volume, your broker will allow you to withdraw the bonus. 

That’s why it’s essential to read the broker’s terms and conditions before making the final decision. 

The bottom line

To choose the right Forex broker, you need to take into consideration a few things. First of all, learn more about brokers and Forex account types. Secondly, check your broker by using an international system in order to protect yourself from fraud. Keep in mind, the withdrawal process should be free of charge. 

You need to make sure your broker has an excellent customer service, user-friendly trading platform and generous bonuses for a start. 

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