The retail forex market is incredibly complex. As a beginner, if you’re venturing into the market and sifting through piles of possible brokers to trade with, it can be quite the strenuous task. There are little giveaways that help you identify which is most trustworthy to deal with, however. Here are some of the most prominent qualities you should check off the list when trying to find the right match:
If you’re going to be handing off thousands of your dollars, you need to first and foremost reassure yourself that your money is going into safe hands. Obviously you can’t always go about with your gut feeling when it comes to legitimacy- there are also regulatory bodies in each country that identify which forex trader would be safe to deal with. In Australia, this would mean that the company would be regulated by the Australian Securities & Investment Commission.
You could be any type of currency trader but the fact of the matter remains that there will be transaction costs to deal with. Every time a trade occurs, you’ll have to dole out commission. Since you’re trying to make the most of your dealings, you’d probably want to compare and find the most affordable rates but the cheapest don’t often mean that they’re reliable. First and foremost, you’ll have to identify if you need tight spreads for your particular type of trading, then go on to evaluate what type of options you’re left with. Remember, it’s about finding the balance between transactions costs and security without compromising either.
It is a digital age after all, so if you’re dealing with online forex trading, all your trading activity will pass through the broker’s platform. So a secure website that looks well maintained and not so shady will be a great indication that you’re dealing with a trustworthy company. A great navigation feed, easy-to-use technical tools and charts are other features you’ll want to be on the lookout for.
Deposits and Withdrawals
To facilitate trading would be the only reason why your broker would want to hold on to your funds and delay the withdrawals process. However, the more reputable companies would promise a hassle-free experience when it comes to depositing funds and withdrawing your earnings. So since they’re only holding on to your funds to make trading easier, there’s no reason to draw out the withdrawal process- it should ideally be smooth and in good time.
Keep a beady eye out for brokers who have a kind and pleasant demeanour when opening an account but fall apart when it comes to aftersales. The competence of a company is not only determined by how well they can execute trades but how they can handle customer support, account issues or technical run-ins as well. Ideally you’d be on the lookout for someone that is easily contactable and responds fast to your queries.
These are the most important things to keep in mind when selecting a forex broker. Your funds are invaluable so this is what you can do to make sure it falls into the right hands.