If you want to become a forex trader, one of the essential steps you need to take is to get a trusted forex broker. It is very essential since you’ll be trading through a broker’s platform.
You also need to verify what their trading conditions are including their minimum deposit. Search the market for a trusted broker can be daunting especially if you don’t know exactly what to look for. Also understanding of the risks of Forex trading is important for a trader to avoid losses. We want to make your task easier by providing for you in this article tips to finding a trusted broker.
1: Your trading goals
List your trading goals. When you know precisely what you want to achieve through your trades, you can easily use it to verify if a broker you intend to work with offers those features.
2: Visit the brokers’ websites
With a list of the things you want to achieve with trades in your hand, you can start your search by visiting the broker's websites. When you come to the website of a forex company, read their forex trading rules and policies. Try to comprehend their terms and conditions and check how transparent their operations are.
Another factor to consider is regulation. Check if they are regulated and which regulatory body supervises their activities. Never sign up with any broker unless they’re regulated and monitored by a credible regulatory organization.
Two ways to determine if a broker is regulated or not
- Search the company’s website for their license number and the name of the regulatory authority.
- Check the website of the regulatory body to confirm if the company was truly licensed or not.
A trusted forex broker should also have their physical address on their website. Check the Contact Page and ensure that they operate from a credible physical office. If you can’t get any information on them, you shouldn’t trust the broker. Don’t trust contacts like telephone numbers, live chat features, skype and email if you can’t find the physical address of the broker.
Also, check the features on the website and ensure that their website is user-friendly and fully functional.
3: Read reviews of a few trusted forex brokers
While reading the broker’s review is very helpful, it can be daunting. So, try to cross-check the broker's credibility with the tips below:
How many years have they been in operation? A broker that is functional for more than a decade would have broad industry experience and gather a sufficient amount of clients. A Long-term consistent operation will tell you that a brokerage is a credible business
Is the broker working under the regulatory surveillance of the jurisdictions from where they operate?
Does the broker offer a sufficient amount of tradable assets including Forex, Futures, Stocks, Commodities, CFDs, Options and more?
Ensure that the broker doesn’t engage in profit cancellations or withdrawal denials and read verified user’s review of the broker.
Other things you need to verify is that the broker is reputable, transparent with its operations, and make depositing and withdrawal of funds easy. Also, check to ensure they offer stellar customer support.
Another essential point to always read the broker's terms and conditions and try to fully understand it before signing up with them. Also, when you read, ensure you make clarifications with the broker's customer support to ensure that there is no recent update which is not presently stated on the site that might affect your trades.
Why You Must Trade With A trusted Forex Broker
Below are some of the reasons why you need to work with a trusted and regulated forex broker:
1. To protect you from Fraud
A few common types of fraud associated with forex brokers include high commissions, extremely wide spreads, withdrawal restrictions, and hidden terms and conditions. A trusted and regulated forex broker ensures that you get compensated if the broker declares bankruptcy.
2. Segregation of funds
Trusted brokers are required by regulatory bodies to segregate the funds of clients and the brokerage funds in different accounts. This ensures real-time withdrawals.
Trade and understand the risks
Forex trading involves risk. A forex trader's odds for success will be boosted when you work with a trusted broker. If you follow the tips we have provided here, you’ll like to achieve your trading goals.
