Retail forex market is a very dynamic and competitive market that the idea of choosing from the large pool of available brokers can be a big challenge. It can be an overwhelming task especially if you don’t know exactly what you ought to look for. We will look into what you should consider when picking a forex broker.
The fundamental characteristic that an ideal broker must have is a high level of security. This is because you will not hand over your hard earned money to someone who simply claims he’s legit, right? Fortunately, it is never difficult to check the credibility of a forex broker. This is due to the availability of regulatory agencies globally who can help you discern the trustworthy from the fraudulent. A credible broker must be a member of a regulatory body.
Irrespective of the kind of currency you are dealing with, you will always be subjected to transactional costs. Every time you enter a trade, you will have to pay for the spread or a commission. It is therefore vital to look for a broker with affordable and cost-effective rates. Saxo is a great choice especially when opening a forex trading account Singapore.
It is also important to ensure that you review all available options in case you need tight spreads for your trading. Generally, it is all about finding the right balance between security and low transaction costs.
Deposit and withdrawal
Any forex broker worth his salt will always permit you to deposit or withdraw funds without any complications. In essence, brokers have no reason to complicate the process of withdrawal of profits. This is simply because of the fact that their only purpose for holding your funds is to aid trading.
Your forex broker only holds your money to ensure that your trading is made simpler so there is no reason to give you a hard time getting the proceeds you have made. As a result, the process of withdrawal ought to be not only prompt, but seamless.
The online forex trading is usually facilitated through the trading platform of brokers. This implies that the trading platform of your broker must be comprehensible and steady. Before choosing which broker to work with, check its trading platform to see what they have to offer.
Does the platform have free news feed? Does it offer you with all the information you require to facilitate your trading? How about the technical and charting tools, are they easy to use?
It is obligatory that your preferred broker fills you at the best possible price for your orders. In most cases, under ideal circumstances, like for instance if there are no crucial news releases, the broker should be able to fill you with the market price you see when you click the ‘buy’ or ‘sell’ button.
For instance, assuming you have a fast and stable internet connection, in case you click ‘buy’ EUR/USD for 1:3000, you ought to get filled at that particular price or within its micro-pips. The speeds at which your orders are filled is vital. This is important especially for scalpers. Any difference in a few pips can make it quite difficult for you to win a trade.
Just like anyone else, brokers may not be perfect. It is therefore of extreme importance for you to choose a broker who is easily accessible especially when challenges arise. The proficiency of a broker when dealing with account or technical support issues is just as vital as their performance on executing trades.
In some cases, a broker may be kind and of great help in the process of opening accounts, but can be a big headache when offering ‘after sales support’. Unexpected situations are bound to happen, even as you trade. As a result, you need a broker who can resolve your challenges in a timely manner. The broker should be accessible through telephone, chat, or e-mail and should be able to respond fast enough.