Committing to a quality, reliable and secure Forex broker is not always easy. The demand is such today that the number of online brokers continues to increase at an incredible rate.
This proliferation of online trading sites allows fraudulent platforms to sneak among the proposals of reliable brokers. A moment of inattention and you might, without even realizing it, join a most incompetent trading site.
Distinguishing frankly between a reputable Forex broker and a new, dishonest broker is no longer possible without comparing the trading offering and extensive testing of the platform. Finding and choosing the best Forex broker can be energy-intensive and time-consuming! Spare your time and energy, read the broker reviews because they are a good source of information on the broker.
As professional support to you as a novice trader, we share here with you several tips to make sure you choose a quality Forex broker and avoid scams.
- Check the Forex Broker regulation
Investing in a trading platform without first checking that this Forex broker is subject to regulation by an official authority would be dangerous flippancy!
Several official regulatory bodies prove that an online broker is trustworthy. Here are some basic but crucial tips that will ensure you are dealing with the broker that operates following the best trading practices.
- Compare the spreads and fees of the online broker
Not all Forex brokers work the same when it comes to costing their services. Many fees can be applied, especially if the broker plays with honesty limits.
Finding out about the fees charged by an online broker is essential.
Be aware that generally, reputable and established Forex brokers rarely charge direct commissions on the investments made.
Note that spreads result from the difference between the offer and the selling price and allow conscientious brokers to earn money.
3. Check out the trading strategies and the financial instruments available
Depending on your trader profile, beginner or seasoned, you will undoubtedly want to evolve on a trading platform that allows you to use a few trading strategies as you wish, such as:
- Day trading,
- or even swing trading
It is therefore important to check this aspect before committing to a Forex broker.
Besides, checking if there are other financial instruments such as currencies, commodities or shares is of your best interest in terms of diversification before opening a trading account.
4. Depositing and withdrawal process
You need to be as much as possible in control of your money. Therefore, the depositing process, as well as a fast withdrawal process, are important. Open an account, try out trading with small amounts and in that way, you can verify if the broker took care to make the money flow as easy as possible.
5. Test the customer service efficiency
Before entrusting your money to a Forex broker and investing through their online trading platform, do not hesitate for a moment to test customer service by a chatbot, email or a phone.
This customer support must be proficient in your language and also must be as follows:
- responsive and even proactive to provide you with the best possible support for your investments;
- able to offer you solutions thanks to competent advisers;
- accessible 24 through 7
Be sure to check Finscreener, a website providing various types of financial information, data, and news from stock, forex, and commodity markets.
6. Check out the Forex broker offers a trading training
The management of your portfolio is not done without financial investment, but also personal. Believing that investing in Forex is accessible to everyone, without a minimum of knowledge of the market, of the jargon and trading practice is utopian.
Online trading platforms have understood this well. That’s why they support investors by offering them trading training adapted to their trader profile and the different types of strategies used.