How to choose a RIGHT Forex Broker? – Angela
Dear All,
I would like to share with you some valuable tips on choosing the right broker.
I have been in the financial industry for more than 10 years, specializing in forex trading.
There are a lot of brokers available online and any part of the world, but to shrimp down the trusted and valid broker, you can take note on this 7 key points.
1. Where are they regulated in?
There are numbers of licensed available in the world but the top 3 most trusted license would be UK FCA, Singapore MAS and Australia ASIC.
Different country regulator have different jurisdiction such margin rates requirement and protection.
For details, best is to check with the official website of the regulator or the broker itself.
2. Is client fund place in segregated account?
Safety of fund is the key because you need to ensure where is your money deposit to and what is the usage of it.
For trusted broker, usually they will place client fund in segregated trust account. This fund will not be mix with the company operating funds.
3. What types of broker they are?
ECN, STP or Market Makers.
This identify how they run their business and process client trading order especially on the execution speed.
4. Platform and Account types offering?
Broker usually offer Meta Trader 4 or their in-house trading platform.
Some offer both trading platform for client to trade.
How a broker earn? There are two way which is earning from spreads or commission.
You can choose either spreads only account or tighter spreads account with commission charges.
For spreads only account, the cost of trading will be the spreads.
For commission account, your cost is spreads (usually can be as low as 0–0.02 pips) and commission charges. Each broker commission charges and spreads varies.
Lastly will be Swap free or Islamic account. For this account usually it will be swap/interest free, but there may be admin fees charges.
Note: Not all the broker offer this type of account.
5. Products range
Most forex broker also offer CFDs trading on Commodities, Indices, Bonds, metals and cryptocurrency.
It is important to know each product trading hours especially CFDs instrument and also what is the underlying exchange the price came from.
Big broker usually publish their liquidity provider.
6. Client support
Who to look for when you need helps?
This is a very important segment where most of trader overlook when first signup the account.
Most broker are offering 24 hours Support Monday to Friday in Live Chat, Phone call and Email.
7. Funding and withdrawal
When comes to money, everything matters. Most broker offer Credit/Debit Card deposit and bank transfer. It is important to check what is the processing time and charges for both deposit and withdrawal.
Summary
Be responsible and do your due diligence when you want to choose Forex broker. Some may offer you attractive spreads or bonus, before you decide, hope this 7 key points help you to make a wise choice.
Happy Trading,guys!
Published at Sat, 01 Feb 2020 06:37:29 +0000
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