How to Choose a Good Forex Broker?
When you are choosing a forex broker, there are a few things that are important to keep in mind. Firstly, the quality of service offered by online Forex brokers vary wildly, and it is important that you do your own research to separate the good from the bad. ForexKingz offers you some great insights to make your choice easier.
What to Consider?
Among the other things people naturally take into consideration when choosing a forex broker are the spreads that are offered, available trading assets, platforms, leverage offered, and minimum deposit requirements. However, there are other factors that should be paid even closer attention to, including:
Where is your chosen broker regulated and what kind of protection does that jurisdiction offer investors? Those are important questions to ask when choosing a forex broker. It is important in terms of their withdrawal policies, as some brokers that are not well regulated may make it very difficult for you to withdraw your own funds. Also keep in mind that some countries don’t require a broker to be regulated at all. If your broker is based in such a jurisdiction, it is best to steer away.
Deposit / Withdrawal
It is also important to familiarize yourself with the deposit and withdrawal policies when choosing a Forex broker. Keep in mind that while deposits are usually very easy to make, withdrawals can be handled differently and are not always that easy. Check which methods they offer for withdrawals, any withdrawal fees charged, and also do some research online into other traders’ experience with the broker.
Make sure your broker is well-capitalized and has an investor protection scheme in place in case the company is liquidated. In most cases, this very much depends on the regulation the broker is subject to, so do your own due diligence and make sure the broker is well-regulated.
Segregation of Funds
Well-regulated Forex brokers should keep their client’s funds strictly segregated from the company’s own funds. This means that the client’s money cannot under any circumstances be used to pay off the company’s creditors. This is very important for the protection of client’s funds in the event the broker finds itself in any kind of financial trouble.
Customer service is another issue that is often overlooked when choosing a good forex broker. Does the broker offer 24/7 customer service? Can you actually reach them when you need, or will you end up waiting for hours on the phone just to speak with an agent? Make no mistake, some brokers do whatever it takes get you to make a deposit, but will hardly pick up the phone if you need help with your withdrawals or encounter an issue while trading.
Your Broker Want You to Succeed
If your chosen broker scores well on all the things listed above, you can rest assured that you have made a good choice. Also keep in mind that most brokers want to continue to do business with you, and therefore want to help you succeed as a trader. Happy clients who are actively trading means more business for the broker. Also make sure to check our Top 10 Brokers closely for easy comparison between the different brokers. Online forums where you can get an idea of other trader’s experience can also be a good place to get advice, but make sure you understand people’s reason for recommending one broker over another. Ultimately, you have to do your own research and good judgment to make sure the broker you trust your money with is a reliable and trustworthy partner.