Finding The Best Forex Broker Online
Choosing your broker is extremely important, but before you do, make sure that you have completed all of our Forex Lessons. It’s critical that you feel ready to start trading, even as a beginner. Do you have the knowledge, focus and energy that it requires? Traders need to have determination, along with the integrity to overcome problems that can be inherent in the Forex Trading lifestyle. They also need to have the time and drive to be able to expend considerable energy on the ultimate goal – which is to be successful.
If you are sure that you possess all of these qualities and are determined to persevere until you have a positive outcome on any activity, then you are ready to start trading Forex. Arm yourself with all the knowledge and research that you can. Ensure that you are not taken in by any tricks or scams by fully digesting all the information provided on our website. Only after acquiring all the necessary information, should you open an online account and take your first steps towards Forex Trading.
You will find a vast selection of brokers to choose from in the online Forex market. It can be time-consuming and confusing to choose between them, and many are entirely unregulated. Each broker will maintain that they offer the ultimate in services and products, and make promises of the enormous returns on offer. The best way to start is to read our reliable reviews on the most trusted and reputable brokers around. These contain detailed information covering all the essential areas and criteria which you should use to screen the brokers and ensure your safety. There is a diverse range of options, and no one broker can cater for the many different kinds of traders. So, you should understand your expectations for the trading experience and look for those that satisfy your primary requirements.
Before you make a final decision, let’s look at the most important things to consider.
Your Security Is Key
Your safety and security is the primary consideration. There is no point in selecting a broker and opening an account, to later find that all their promises were false. Even worse, you are at risk of your funds being misappropriated. There is absolutely no logic in spending valuable time studying analysis or currency trends if your profits are subsequently lost through a poor choice of Forex broker.
It is always wise to check the broker’s background and note comments and complaints from regular users. A reliable and safe track record speaks volumes, and we would never advise you to use an unregulated broker. Regulatory bodies exist in this country and others to effectively screen and monitor the varies company’s financial services, and also to protect the traders. Forex brokers in Australia should be regulated by ASIC, while many may be licensed by CySEC and other relevant authorities worldwide.
To make the task less time consuming, you can check out our broker reviews which include all the most popular and reliable options available in the marketplace.
Deposits, Spreads And Margins
As a new trader, you will probably be concerned about the initial deposit required by the broker. You may only want to test the water and risk a small amount of money, which is extremely sensible. However, seeking out brokers that offer a very low deposit is not always the best option, unless you have a very restricted budget for Forex Trading. Many of the top brokers actually have a high initial deposit requirement in order to attract serious clients. These are the same brokers that offer the very best in training, trading practices and trader tools.
Another thing to consider is that Forex is exceptionally volatile so that you will need to optimise your account so that it can cope with the ordinary dynamic market fluctuations. You should already be aware of the many difficulties that can be caused by under-capitalisation, so this should be a significant consideration before you decide to start trading. You should, of course, only ever risk what you can afford to lose, so this will dictate the initial deposit to some extent. However, beginning to trade with insufficient funds and trading at low leverage is also not a wise decision.
Withdrawing Your Money
While on the subject of depositing, this should be a smooth process, and you will also need to ensure that you can withdraw your money easily and quickly. This should be something on which you do not compromise, as there is no justification for any broker to cause delays when you request a withdrawal. Any good Forex broker will also display terms about what will happen if you are not completely satisfied with the products and services. Regardless of your reasons, they should smoothly facilitate the closure of your account. If the broker is not transparent about these essential services, then there is no guarantee that they will be committed to providing a high-quality trading experience.
Types Of Accounts
Many online Forex brokers provide numerous options for individual account packages, and the one that you select will depend on your personal preference. You may find that there is just one account package which has many options for customisation. This could provide a good alternative, as it gives you a high-quality product, with margin and leverage requirements which can be adjusted to suit a wide range of needs and experience.
You have already learnt about spreads and how important they are for all levels of Forex traders. There is a balance to be considered here too, since sometimes for beginners it is advisable to go with a well-known broker. However, you may find that they charge a little more for their bid-ask spreads as they offer a superior track record and history. All brokers will typically receive payment for services by slightly increasing the spread against the market’s quoted values. Of course, this means you are paying out hard earned cash, and you will pay this whether you make a loss or a profit on your trade. Deciding whether to choose a broker offering a competitive spread, or a reputable history, will depend on your own trading expectations.
Margin And Leverage Ratios
A further consideration when selecting a Forex broker is the leverage ratios and margin requirements. If you are just starting out, then lower leverage is more appropriate, so watch out for this figure. A good broker will be customisable so that you can learn and develop your skills in tandem with the leverage; this can be adjusted slowly, as you gain in confidence and experience. Higher leverage is only suited to long-term traders who have had proven success, and evaluating its actual value can be extremely difficult. Experienced Forex traders use multiple techniques in their trades, and no one rule can determine the optimal level. However, even the most seasoned traders do not usually go above 10-1.
Reliable Trading Software
Any good Forex broker will provide a sleek trading platform and software, as nearly all the trading activity is conducted via this. It is also essential for traders, so that you are able to enjoy a secure experience, and use the tools to make the right trading decisions. A platform that offers a high level of automation is a good choice as it reduces the risk of any third party interference. It’s also imperative that it provides a demo account so that you can try out the services on offer before risking any of your money. The other benefit of a demo account is that you can check that the servers are reliable. There is nothing more frustrating than having connection problems while you are doing something important. It also allows you to check the spreads during a volatile market, along with identifying any slippage, misquoting, or system bugs.
Any successful trading platform will offer a huge selection of technical tools and indicators for you to use. You should also be able to customise specific features and options to suit your trading style and requirements. Along with this, it should provide market news and analysis, learning aids and video tutorials to help you on your journey. You will be looking for a sleek interface, with well-designed charts and graphs that are easy to read. It should be user-friendly, simple to navigate, and easy to find all the information that you require to make your daily decisions. Choosing an advanced trading platform with the latest developments will make your first venture into Forex trading much more manageable. One of the reasons that some brokers are so popular is that experienced traders know that well-designed and regularly updated software is a huge benefit and reduces the amount of stress during research and trading.
Customer Support Services
The level of customer support offered by a broker is a good reflection of their professionalism. Any software platform can generate errors or experience problems, so it’s important that you can access immediate assistance. If there are issues with the software, or delays with deposits or withdrawals, you need to be confident that somebody will come to your aid. Friendly, helpful and experienced staff are a must, so it’s always beneficial to check out the service levels before you open an account. You can try to contact them yourself, read reviews and find out what feedback there is from existing traders.
Many of the most popular brokers have multiple language options and employ staff who have direct trading experience. If they understand economics and how all the analysis tools work, then you will be able to ask questions and learn even faster. Competent staff and a supportive team can make all the difference to your trading experience, and if a broker does not offer this, then it’s a red flag for its overall competence and services.
Tradable Currencies On Offer
Lastly, you will want to select a broker that provides a good selection of different tradable currencies. Try to ensure that you can trade in different classifications of currency pairs across a broad spectrum. While you are learning, you will be focusing on the basics of the package on offer, but as you progress, these small things will become more important. For instance, an experienced trader would look for pairs which are outside of the current major economies. As an example, the ability to trade two pairs of major world currencies, two pairs of floating currencies, two fixed currencies, and two pairs of rare currencies is a more attractive offer than being restricted to 8 pairs from well-developed economies.
Read Our Broker Reviews
For a wealth of information all in one place, go to our main reviews section before you do anything else. All our recommended brokers are correctly regulated and provide a safe place to begin your Forex trading. Each one has been carefully investigated and analysed so that you have detailed information covering all the important areas. We aim to provide an unbiased and realistic assessment of precisely what the broker has to offer, along with an evaluation of the platform features and tools. This should then enable you to make an informed decision based on your preferences, expectations, and suitability for your trading purposes. Taking your time to choose the right broker will ensure that your first experience is a smooth, secure and enjoyable one.
More From The Free Forex Trading Beginners Course
Part 1: Reading A Currency Quote
Part 2: What Are Forex Pips, Leverage, Lots, And Margin?
Part 3: Explore Currency Pairs And Their Different Aspects
Part 4: Fundamental Analysis And Technical Analysis In Brief
Part 5: The Use Of Forex Technical Analysis
Part 6: The Importance Of Fundamental Analysis For Forex
Part 7: You Need To Apply Some Psychology To Be A Successful Trader
Part 8: Finding The Best Forex Broker Online
Part 9: Disclaimer