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How To Select The Right Forex Broker

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Content provided by CompareForexBrokers

In an industry that is quite competitive, there is always a question as to whether or not a customer has chosen the right product for themselves. This concern rings true with money Forex Traders.

The Forex Broker market is saturated with many different trading options; however, we have tried to come up with the most important metrics that should be considered when choosing which Forex Broker to leave your investment with. In all honesty, it could be the difference between maximising your investment and seeing your capital go down the drain.

Is your broker regulated?

One of the more integral features of a Forex Broker is their Security. Is the Broker regulated? The regulatory body in South Africa is known as the FSCA (Financial Services Conduct Authority). The FSCA is known as a Tier 1 regulator; is a broker has satisfied their requirements, as a trader you would feel comfortable to rely on their credibility.

How much do my trades really cost?

Another aspect of the Forex experience that determines what Broker a trader chooses is the costs involved with the brokerage account. No matter where a trader is looking, there are always commissions to be paid and spreads to be assessed. How much of a profit is a broker attempting to gain? Are majority of your wins, going straight to your bank account? This will also depend on the type of trader you are. If you are looking for tight spreads, you might choose to trade with a specific broker.

Trading Platforms

One of the more popular discussions when it comes to compare Forex Brokers centres around the trading platforms that brokers use, which brokers offer the most advanced platforms, the most popular, the more original platforms etc. One of the key assessment criteria is whether the platform is easy to understand, use and process trades through. Day traders might require features including Level 2 quotes as well as in depth market charts to assist with analysis. Whereas other platforms might require satisfaction of certain benchmarks to enable a trader to employ that particular platform. A good reference point is this list of forex trading platforms which is segregated by software and traders ability.

How important is customer service?

Another metric in determining the most optimal Forex Broker is assessing their customer service. Does a broker offer 24/7 phone and email access? The most successful Forex Brokers will do their utmost for their customers, including providing an expert account advisor to assist with making trades, maximising profits, and minimising risk throughout a traders FX portfolio. Some FX brokers also offer translation services. If you’re interested in seeing how the various brokers stack up to a customer service test, see here.

What does my broker offer?

Finally, before making your final choice on FX Broker – attention should be paid to the financial instruments offered by the various brokers. Some offer the basic currency pairings and not much else. For a trader looking to diversify their portfolio and manage risk in the most effective manner possible, choosing such a broker would not be the right decision. Brokers that offer commodities, agriculture instruments, metals, stocks, cryptocurrency, and futures would provide a trader with all the tools to ensure they achieve trading success.

Always remember that trading comes with risk and its important to manage such risks in an adequate manner. See here for more information on African brokers and what might suit your trading strategy.

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