Things to Consider When Choosing a Forex Broker

how to choose a forex broker
How to choose a Forex broker?

It is very important for investors who want to evaluate their investments in the forex market to make the right decision in choosing a Forex broker in terms of success in their transactions. There are many forex brokerage firms in the country and abroad. Since each has different advantages and features, it is recommended to pay attention to the following items when choosing between forex brokers.

The main features to consider when choosing a Forex broker are;

It is very important for investors to focus on suitable issues for their own risk profile and needs when evaluating Forex companies. Every institution may not be the right choice for everyone. There are various comments about Forex companies on many forum sites. Although the experiences and evaluations of people who have traded between these institutions before are very important, the person should make the right decision himself.

1. RELIABILITY

Countries have capital market boards. A Forex broker approved by these institutions is authorized for their work. Therefore, it is very important that investors choose an institution with this certificate of authority so that he/she can make forex transactions safely.

Deposit, withdrawal, service received, promises and promises, trading platform, in short, are the only real, authorization documents that protect all investors’ legal rights regarding Forex. Therefore, when making a company comparison, it should be checked whether the companies have the relevant licenses.

2. SPREAD

Spread, which is the difference between the buying and selling prices of currency pairs, is important in company preferences as it will affect investors’ costs while trading. The spread rates offered by each institution to their customers are different. In order to attract more customers, forex brokers want to provide the most suitable spread for the price providers or trading desks they work with. However, the issue to be considered here is that it can be purchased in a service that not only has a low spread but can also offer a fixed spread.

  If the institution that investors prefer with the lowest spread offers variable rates, it may exceed the cost the investor expects as it sees very high rates during the day. Therefore, it should be preferred that the spread rates are fixed.

3. EDUCATION

For customers who are new to the Forex market, forex training should be the primary reason for preference. Many institutions provide one-on-one and free training to their investors. Investors can perform the training face-to-face from their offices or by connecting to their computer by phone.

To choose the best training intermediary, learning how many stages the training is, whether any fees are charged, the training content, and the conditions under which they offer training will enable investors to make the right decision.

4. 5/24 SERVICE

Investors especially need support in getting analysis, asking for information, and opening transactions on the phone while making forex transactions. Experts at Forex institutions can assist them 24 hours a day, 5 days a week when the market is open. Of course, this varies from institution to institution. For example, while some institutions serve until 18:00 in the evening, some can turn off their phones at 23:00 at night.

Even if an investor does not care at first, he/she can see the great benefit of this support in the future as it is a dynamic market. Especially when he/she does not have internet access, wants to open a position or close their current position, he/she would like to contact the institution 24 hours a day. Or if he/she wants to call and get information when there is an unusual movement in the market. For these reasons, when choosing an intermediary institution, it is necessary to give priority to companies that provide service 24 hours a day, 5 days a week.

5. ANALYSIS SUPPORT

   In order to make profitable transactions in Forex, it is necessary to interpret the market well and to follow the technical and fundamental analysis in the best way. Many customers who are busy during the day want to get this support from the institution because they cannot spare time for analysis.

Many Forex brokerage firms send analysis emails on a daily basis. However, it is much more advantageous to have a financial analyst who takes care of the customers personally, informs and interprets the economic calendar, follows their transactions, and reaches out to them. For this reason, especially those who are new to Forex while choosing a Forex broker should learn whether a financial analyst will be assigned to them and make their decision accordingly.

6. DEPOSIT – WITHDRAWAL SPEED

Deposit and withdrawal requests in Forex transactions are made through banks. The amounts an investor deposits to the institution are stored in the accounts opened on their behalf. When a person deposits money, if he/she has existing positions and does not want to have problems with margin, he/she immediately wants it to be transferred to his/her forex account. Likewise, he/she will be pleased that their withdrawal requests are made on the same day, even within minutes.

 If customers are sensitive about getting fast service, they should choose the institution that works the fastest in terms of depositing and withdrawing money.

7. TRADING PLATFORM

In order to be able to trade in parities, each institution has different trading platforms offered to its customers. The most widely used trading platforms worldwide are Metatrader 4-5 series, and it is actively used on Web platforms where an investor can access his/her account without the need to download a program.

While choosing a Forex broker company, the ease of use of the trading platform, the feature of accessing the account without internet, quotation, freezing, etc. It is necessary to assess that there are no technical malfunctions. In order to make the most accurate decision, the platform should be tried by opening and closing transactions with virtual money on trial accounts before opening a real account.

SEE ALSO: What is a Forex Demo Account?

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Caroline Tetra

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