If you are considering becoming a forex trader, choosing a reliable forex broker is one of the first decisions you will need to take. Since you’ll be trading using their platform and sending money to them, it is really important that you choose a trustworthy broker. Most importantly, the broker has to tick all the boxes for you as a trader. There’s a wide selection of brokers out there, thus it might be really confusing – how do I find the best one?
Forex world is tempting, but also risky. How do you avoid scams and find a truly reliable trading service provider? By giving you some simple advice, we want to make your selection process easier.
- Define your trading objectives
Set your goals. Are you interested in trading crypto? Then look for a broker that offers crypto within their instruments range, since not all forex brokers do. Do you want to try trading major forex pairs? Then you need best pricing available on the market, so find yourself a good broker with low spreads. Some brokers even offer account types with zero spreads and low commission, so it could be a suitable option for you as a trader. Want to benefit even more? Add trading rebates into your earnings by signing up with a rebate provider that will provide you with trading cashback.
- Educate yourself and ask questions before you sign up
Once you shortlist your broker options, you may need to spend more time on their websites. Review the account types, spreads, instruments offered. In addition to that, make sure that broker is well established and has an actual physical location and that they can be contacted by phone. It is almost impossible to read through their terms and conditions, however, the FAQ sections on their website can give you good insights about the products and services provided. You could email the broker before you sign up and ask for information which is usually not available on the website. Questions such as: what documents will I need to provide in order to get verified? What are your deposit options? How will you process my withdrawals? Also make sure that broker has a prompt and efficient Live Chat support service, preferably a 24/5 online live chat agent present. Make sure you can talk to a real agent on the live chat, not just a robot service. This is very important once you start trading and might need urgent help with your account.
- Make sure forex broker is legit
First of all, broker must be a licensed financial services provider. Each broker displays their regulatory information which you can usually find on their Regulation and License section. Legal documentation should be also easily accessible for a trustworthy forex broker.
Also check how long they have been in the business. A broker who has been in business for many years will have a relevant industry experience and a large volume of active traders. A long-term and consistent operation adds to credibility of the broker. Another good way to make sure your newly found broker is not a spam is by reading user reviews on various trading forums. Check what others are saying about their trading experience with that broker and most importantly – look out for possible withdrawal rejection stories. These immediately indicate something might be dodgy with the broker.
Once again, customer experience also mirrors how trustworthy a broker is, thus checkout their live chat, email responsiveness and social media channels.
Why it is important to trade with a reliable Forex Broker?
- To keep you safe from fraud
High fees, spread widening and other hidden costs is surely something you want to avoid as a new trader. Better start with more conservative account types, small lot sizes and protect your trades, until you feel comfortable and willing to take more risk with higher leverage and larger trade volume sizes.
- To maximise your earnings
A reliable and trustworthy forex broker cares about their reputation and helps traders achieve best trading experience. This allows you to trade stress-free and focus on your trading strategy. Then you can concentrate on the market, spot best opportunities and achieve higher trading profits.
- To have a smooth and pleasant customer experience
From day one when you sign up as a new trader and throughout the whole trading journey you will need to be in constant contact with your account manager and support team of the selected broker. It’s best if you find a team that listens to your needs and works for you, when you need them to.
Stay in the loop and make more money
Trading forex is risky. Trading forex is also profitable. Forex market never sleeps and never stops changing. Keep yourself updated on best spreads offered in the market, try out new instruments to trade, test out different trading approaches. Working with a reputable broker will increase your chances of succeeding as a forex trader. Moreover, adding some additional cost saving benefits, such as forex cashback service, will help you build a robust portfolio.
Keep calm and happy trading.