TABLE OF CONTENTS
WHAT YOU SHOULD KNOW
- Your funds must be kept safe when investing with a forex broker.
- Companies nowadays have started to develop their own trading platforms in a rush to beat the traditional MetaTrader.
- Additional costs may incur if you leave your trading account dormant for some time, varying from broker to broker.
A forex broker provide a suitable link for retail traders to access the financial markets. Previously the best trading conditions were limited to the big banks and hedge funds; however, now, with the inception of the internet, traders can enjoy the same benefits as professionals. Let us go through some vital points one should note before selecting a currency brokerage.
Regulation and Licenses
Your funds must be kept safe when investing with a ecn forex broker, as there is still a possibility that these companies can go bankrupt. Therefore check out the legal regulation of a
brokerage by a noted regulator who has a keen eye on every aspect of their
services; if authorities fear that an exchange is double-crossing, hefty fines
are imposed with the possibility of a permanent ban. Clients can also complain
directly to these authorities if they feel a genuine issue is unresolved by the
broker. Following regulatory firms are the best ones to keep in mind:
· Australia: Australian Securities and Investment Commission (ASIC)
· Cyprus: Cyprus Securities and Exchange Commission (CySEC),
· Switzerland: Swiss Federal Banking Commission (SFBC)
· Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
· France: Autorité des Marchés Financiers (AMF)
· Canada: Investment Information
Regulatory Organization of Canada (IIROC
Forex Trading Platforms
Companies nowadays have started to develop their own trading platforms in a rush to beat the traditional MetaTrader by offering customers a local experience with better options. A trading platform is where you place and modify your trades or even use charts and tools to analyze the markets. It holds profound importance as it can significantly impact your trades if you don’t know how to handle such software. Make sure the platform your brokerage provides has useful tools, various order types, strategy tester, one-click trading, and a user manual to help one in the learning process.
Currency Pairs Offered
Each trader has a unique trading strategy of his own to tackle the markets. Your forex broker must have enough currency pairs, or at least the ones you’ll utilize. Having more trading instruments will also allow one to test out his game plan on other potentially more profitable currencies.
Different accounts in the forex industry vary based on transaction costs, commissions, minimum deposit, leverage, etc. An Electronic Communication Network (ECN) or No Dealing Desk (NDD) account will be more suitable for traders with a quick trading style and require low latency on their executions.
The ecn forex broker generally charges a fixed commission for such accounts while having a low spread, usually zero pips. Standard accounts are more commonly used and have fees built into the spread. They also require less amount in terms of the minimum deposit as compared with ECN or NDD.
Deposit, Withdrawal, and Other Fees
Trading Charts, Tools, and Education
A good forex broker should answer any of your questions reasonably and professionally. Customer support is generally handed out through live chat, email, and support. Most companies have these options available 24/5; however, some have 24/7 support and more means available to deal with their clients.