Becoming a profitable forex trader will not happen if you choose the wrong forex broker. The broker you are about to deal with can be decisive for your further success in forex trading.
In this article I give you tips on which Forex broker you can trust, I want to take you into a number of factors that you have to take into account when choosing a Forex broker.
Is the Forex trading platform safe or not? This is one of the most important factors to consider before you register with a Forex trading platform. Keep in mind that you are trading with real money on the platform and that you need to be certain of security before you trust the broker on your hard-earned pennies. You can consult regulatory authorities to find out how secure the broker is or not. Before you register on the platform, check whether the broker is regulated or not; the regulated are safer than others.
To note: Countries such as the United States, the United Kingdom, Australia, Switzerland, Germany, France and Canada have regulatory authorities that control the activities of Forex trading platforms.
Cost of a transaction
How much does it cost to buy or sell currencies on that platform? Or what is the pip spread? The pip spread represents the amount that you are expected to pay to the broker as a commission for that specific currency pair that you want to trade. Before registering a live account with the broker, you should check whether the pip spread is narrow or wide. Go for those outlets with narrow pip spreads, so you do not have to pay a lot of money in the form of commission. Tight spreads are always better. But keep in mind that the main currency pairs (majors) usually have a tighter pip spread compared to the minor currency pairs.
Deposit and withdraw money
Apart from the points mentioned above, you also need to know the speed of deposit and withdrawal on the Forex platform before you start trading. Discover whether the deposit and withdrawal procedures work smoothly or not. However, many Forex brokers such as cmtrading simplify the deposit and withdrawal procedures to meet the needs of their customers. Find out if the deposited money is directly on your account or not. Also discover whether the money you withdraw is processed quickly and is immediately credited to your bank account.
Has any of their customers ever complained about the deposit of withdrawal processes? Can the depositing and recording be done in different ways? These are basic questions that you need to ask before you take a live account with a Forex broker.
The trading platform
More than 90% of the trading activity takes place on the trading platform. That is why the trading platform must be stable and user-friendly. What does the trading platform have to offer? Does it provide a news feed for free? How many graphs and technical indicators are available on the platform? Does the trading platform support MT4 or MT5? Does the broker offer its own trading platform? You must also find answers to these questions before you register with that trading platform.
MT4 vs. MT5
Some Forex brokers offer both MT4 and MT5 trading platforms, while others offer only MT4. Both trading platforms support “expert advisers” (forex robots) and automated trading systems, but each has a different function. Some think that MT5 is the upgraded version of MT4, but that is not the case. MT5 was mainly designed for those who want to venture into futures, shares and CFDs, while MT4 is designed for Forex traders.
Whatever broker you choose, make sure you have considered the things above.