The choice of your Forex Broker is one of the most important in your trading journey. In this article I will show you some of the main aspects to consider when choosing a broker, so that you can better understand how to choose the Best Forex Broker for You.
Your broker is one of the most important components when trading. You give them your money, you rely on them to execute your trades, you require their assistance when something goes wrong. You dont want your money to be in the hands of someone you dont trust so you better do your homeworks and choose the best broker for your needs.
You may need a broker with zero spread, you may want a broker withVPS service, with a huge bonus on deposits, with special accounts or other special features. Below I am going to show you what you should consider when choosing the Best Forex Broker for you.
In the articleMy Recommended Forex Brokersyou can also find a short list of my favourite brokers and who I think they are for. If you want other suggestions about your next step in your trading career you can also readYour Path to Make Money Trading the Forex.
How does this affect you? Having an account in a currency that is different from the one of your bank account or e-wallet could result in some more commissions during deposit and withdrawal operations. I do not think this is a big deal but you maybe prefer to have the account in a specific currency
Deposit and Withdrawal methods are very important however these days all the most popular and reliable brokers are well equipped with all the necessary methods.
All major debit and credit cards are accepted (Mastercard and Visa) so are the major e-wallet services (Skrill and Neteller), obviously they all offer Wire Transfer as well.
Check the Deposit and Withdrawal methods before registering with a broker just to make sure there is a suitable method for you.
All major brokers have a minimum deposit between 50 and 500$, this must be considered if you have a limited capital to invest or if you want to just try out a broker with real money.
Big Point this one! Bonus are very appealing and some brokers are much better than others with that! Some brokers do not offer bonuses while other offer bonuses on each deposit. Check out the offered bonus before registering with a broker, you dont want to miss out free funds!
Some brokers have a limited list of instruments that you can trade, other brokers have very wide range of instruments, this may also change within the same broker with different account types. Talking about Forex, all brokers allow you to trade all major currency pairs, I would suggest to check the instruments available only if you are interested in exotic pairs or specific stocks.
Since the spread is the price that you pay to trade in the Forex market you should find a honest broker with low spreads.
Nowadays many brokers have their spreads aligned so just check that the broker that you want to use has spreads similar to the average.
Some brokers have accounts with zero spread and different commission systems so if this is what you are after you may want to double check with the broker before registering.
If you are of Islamic religion you may need to check with the broker if they offer Islamic accounts. These accounts are swap-free and allow you to respect your religious faith.
This is quite important if you prefer a trading platform rather than another. Some brokers, the majority, offer MetaTrader and a web browser platform, other brokers offer CTrader and some only have a web browser interface.
A must say is that pretty much all brokers these days offer also apps to trade from mobile devices.
The distance from your client and the servers may in fact cause some delays an the execution. Usually this is a problem only if you use Expert Advisors that open and close orders frequently, for the majority of traders though it wont be a big issue.
If you use Expert Advisors I strongly suggest you to use a broker that offers Virtual Private Server (VPS).
The advantage of having a broker with VPS service is that usually the VPS are located close to the brokerage servers, furthermore it would be easier for the broker to provide you technical support. Last but not to forget is that usually if you trade a minimum volume or if your balance is above a specific threshold, the VPS is free!
Choose a Broker with a reliable and quick customer support, check how you can contact them, test them, you can even have a chat or call with them before registering to see how they respond. Dont go with someone you dont trust.
All the brokers these days offer the same features, the same spreads, the same deposit and withdraw methods, however some brokers offer more than others.
Some brokers have special features that may induce you to choose them rather than others.
Some of the special powers may be:
Educational Material, courses, videos, trainings
Inclusion of additional trading tools, for example Expert Advisors and Indicators
Referral Programs, so you can make some money from your referrals
These are only some of the additional features a broker can offer, there are many others, unique and appealing, check with the broker and see what it has in store for you.
As you can see there are many factors to consider when you are choosing the broker to use.
The list of brokers out there is so long that the choice can be very hard to make, especially if you are not experienced, it can take a very long time and also cost you money in case you take the wrong decision.
In the articleMy Recommended Best Forex BrokersI have short-listed 3 brokers for you, so that you can have a starting point. Read it through and see if you are interested in any of them, my suggestion is to try them out with a Free Demo Account and if happy start trading with some Real Money.
If you are not sure how to progress in your trading journey or how to improve and make more money you can also read the articleYour Path to Make Money Trading the Forex, you will find some interesting advice.
If you have any doubt or feedback please leave a comment below.
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