Whenever you visit a financial news website, you are likely to be bombarded with many advertisements from various forex brokers. If you are a forex trader, you might be confused with the presence of such an overwhelming number of forex brokers. That can make it challenging for you to choose the right broker for your trading journey.
So how do you choose the right forex broker? There are few factors to consider while making a choice for an appropriate forex broker. In this article we mentioned five things that you should keep in mind while choosing the right broker for you.
1- Regulation and Reputation
The first thing to check while choosing a forex broker or ftmo ea is their regulation and reputation. A reputable broker is a one that is regularized by the concerned regulatory authority. In the United States, a regulated broker is one that has licenses by both the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC). Outside the US, every country has its own regulatory body.
All forex brokers provide details about its regulation in the ‘About Us’ section of the website. Due to security concerns, you should always open an account with a broker that is duly regulated.
2- Account features
Every forex broker has various account offerings such as balance sheet hedging. There are four aspects you should keep in mind when comparing features among different brokers. Those features are following:
- Leverage and margin
- Initial deposit requirements
- Ease of deposits and withdrawals
3- Currency pairs offered
It is true that there are a lot of currencies available for trading in the market, but only a few of them get the majority attention. The majority currency pairs include EUR/ USD, GBP/ USD, USD/ JPY and USD/ CHF.
4- Customer Service
It is also important to check the customer service of the broker you are going to choose. Forex trading happens 24 hours a day, so the customer service provided by the brokers should also be available at any time. Also, check whether it is easy to chat with or call live a customer service representative of the broker. The easiest way to check this is to call their customer service support center; if your call is received and you get a good response then it means their customer service is good.
5- Trading Platform
This is one of the most important factors while choosing a forex broker. A trading platform is a trader’s portal to the market. make sure that the broker comes with such a trading platform software that provides fundamental analysis tools and allows the trader to enter and exit the trades with ease.
There are a large number of forex traders available in the market. You can easily check the volatility of the brokers that you want to compare with the help of the Volatility 75 index, commonly known as VIX 75. This is an amazing tool to check different brokers. Click the given link and compare the brokers that you are confused to choose from.