The Forex market is a 24 hour market and is unique in many ways. It is the largest market in the world today and volumes of up to 4 trillion dollars are being traded on a daily basis. On top of that the Forex market is accessible to about anyone and with the advent of online trading, the number of participants trading the Forex market have been going up and up and so are the number of Forex brokers.
This leads us to one of the most often asked questions and is an important one too, what should we look out for when choosing a Forex broker?
There are a few key pointers that one need to pay attention to when choosing a Vantage Forex broker. Not paying attention to these pointers can be a costly mistake and you wouldn’t want that if you are a trader serious about making a profit trading the Forex market.
Choose a Forex Broker that is regulated
This is one thing that should be at the top of the list when choosing a forex broker. Choose one is that is regulated. If the broker is based in the US, they should be regulated by The National Futures Association (NFA) and should also be registered with the Commodity Futures Trading Commission (CFTC).
If they are based in Australia, the Forex broker should be regulated by the Australian Securities and Investment Commission (ASIC) and they should comply strictly with the financial regulations set out by ASIC.
The Forex broker should be well established and have been in business for a while, plus if they have good reviews from their current users, that would be a sign of reliability.
Good Support and Fast Response Time
A Vantage Forex broker that can be relied on is one that provides good support and on top of that respond to your enquiries speedily. Regardless of whether you are an experienced or beginner trader, you will need a broker that can provide you with some speedy and good support. This is important because if you were to encounter problems during your trading, you would want them to help you get out of that situation in the best way possible.
A Forex broker that gives you low spreads and fast order filling but provides poor support should be avoided. In fact a poor customer support is usually a characteristic of a shady Forex broker.
So do ensure that you choose a Forex broker that provides good and speedy support as a technical issue that involves their trading platform which is not handled well can lead you to losses in your account and you don’t want that.
Find a Forex Broker that provides a Demo account for you to Test
A Forex Broker who is serious about their business would be able to provide you with a demo account for you to test their platform and see whether they are able to provide good customer service and support. At the same time you will not be losing real money when you test their demo account.
Do take note however that there might be some differences in the way a demo account and a live account works. But at least with a demo account available you can get yourself acquainted with the broker’s platform and hence be more confident when trading live.
A Forex broker that does not provide a demo account and if they cannot provide a demo account with zero time restrictions should be avoided.
Get a Forex Broker with a Good Trade Execution Speed
The speed of your trade being executed by your broker is important and this is especially so when you are a trader that trades the news. You will need to act quickly as a trade that is executed late even by a few seconds can mean your trade being profitable or not at all.
As such choose a Vantage Forex broker that is able to provide a good trade execution speed. When you are trading the Forex market based on news and events that are happening at a global level, you do not want to be using a Forex broker that executes your trade like a turtle.
The best brokers will be able to provide you with seamless access to the interbank Forex market and using the latest technologies for the fastest Forex trading execution.
Choose a Forex Broker that provides you with a Powerful MT4 Platform
The Meta Trader 4 (MT4) trading platform is used by hundreds of Forex brokers and there are a couple of reasons why the MT4 trading platform is preferred.
The MT4 trading platform is an extremely user-friendly interface and at the same time offers you with advanced charting features. You can also customise your charts according to the colour that you like and add technical indicators that you would like to use.
The MT4 platform also allows you to use Expert Advisors which allows you to automate your trades. It is this ability to implement algorithmic trading that has made the MT4 platform one of most popular platforms in the world.
MT4 is also a highly secure platform that encrypts the data that has been sent by a trader to a server using a 129-bit key.
I hope that you have gained some important insights on how to choose a reliable Forex broker. Pay close attention to these 5 tips and it will lead you to a broker that can meet or even outperform your trading needs and help you advance in your trading career.