Choosing the Best Forex Broker for You

Choosing the Best Forex Broker for You

When you make the decision to begin forex trading, one of the most important choices you’ll be faced with is the selection of a trading broker that meets your needs. There are thousands of brokerage websites out there, all with different minimum requirements and different commission fees. Depending on your level of experience with trading, many also offer educational courses to help ensure your success (although there are never any guarantees).

For the beginning forex trader, these educational courses are a powerful tool. While they are optional, they will teach you how to navigate their trading platform, as well as some all-important tips for successful market watching. Of course, you’ll want to do some research on your own as well, as the opinions presented may be biased, but generally they are there a helpful service.

If you are more experienced with trading, perhaps these courses are irrelevant to you – what you need is a broker that will match your money and offer you the knowledge of a personal market expert. Having a personal account manager could make the difference you need to bring you from small-scale trading to larger, millionaire-making trades.

Regardless of the amount of money you choose to invest in your forex trading portfolio, it’s important that the broker you choose has options that don’t require a huge deposit. If they demand that you put up thousands of dollars to use their service, this is a monumental risk on your part. Most reputable brokers will allow you to deposit a much smaller amount, typically around $300-500. Even if you choose to invest a larger amount, you have the security of knowing that it wasn’t a condition of your trading it was a personal choice.

If you have a particular trading platform you like to use (be it Tradable, FOREXTrader Pro, MetaTrader 4, or what have you), you will want to ensure that the brokerage website you choose has the platform available. Some websites offer multiple platforms, but many only offer one. If you are still new to forex trading, it doesn’t particularly matter which platform you use – you will have to learn it regardless. For those who have been trading for years, however, starting over fresh can be an inconvenience.

Additionally, it is recommended that you do some research into your choice before you commit to it. While the market itself is not regulated, any brokers who are doing legitimate business will be. The specific regulating commissions will vary depending on your location as well as the location of the broker’s “main office”. If the broker isn’t properly registered with these commissions, that doesn’t automatically mean that they’re going to steal your money, but it can be a red flag.

Another important (but technically optional) feature provided by these brokerage websites is 24-hour customer service. Due to the nature of foreign trading, there is no real “peak” time, nor are there times when trades are down entirely. Should you encounter an issue and seek to resolve it, you’ll undoubtedly want a broker that can handle your questions no matter what time they are presented. If you are able to contact them by phone as well as chat support, this is wonderful. Keep notes on how they answer your questions before you are a client, because this can be indicative of the level of service you will receive once you are using their services. Most brokers will understand this and be helpful to you even if you are not working with them, or if you only have a demo account.

That being said, demo accounts are a great way to test out their platform and their customer service before committing to them handling your money. While they are intended as an introduction to the forex trading possibilities, they generally represent unrealistic expectations for the market (such as “play money” that is of a much larger amount than you actually intend to invest) and are better used as “free trials” of the brokerage service. This is not to say that they’re not valuable tools for beginners. The option of opening a demo account is definitely a helpful educational tool. However, it is no match for experience and professional guidance that you will only receive once you have begun to invest in your trades.

Categories: Tutorials

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