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How to find the best Forex broker

If you are a novice trader or you are an investor looking into investing and delving more into the forex market, finding a broker is extremely important.  Forex trading involves a lot of speculating and risk and hence the task of figuring out where to get a brokerage or a broker can be quite hefty. Sometimes you can have the challenge of finding a broker that is reputable and one that can meet your personal investment needs by offering good services.

When it comes to the key factors you should look into, regulation and financial transparency are of paramount importance. Because of the volatility of the market, you need to know the financial positioning of your preferred forex broker and ensure that it is capitalized meaning that it can be able to deal with the volatility.

Other than the financial transparency others factors include:

  • Regulation

Trade disputes are very common in forex trading. This is one of the main reasons why you need a regulated broker. A regulated broker, as opposed to the unregulated broker, will have a solid resolution to your trade dispute that will be satisfying in nature. In addition, in case the broker shuts down due to any reasons you will be able to be compensated either fully or partly. They are obliged by the regulating body to honor the contract or the trade agreement they made hence they will not be able to default even if they wanted to. Ensure that your broker is regulated by a very established financial system.

  • What the broker offers

The best advice is to first start by opening a demo account just to test the kind of broker they are and what they offer. You want a broker who will be available to meet your needs immediately. With the demo account, you can try to send some questions and observe how fast they take to address them or get back to you. You should also get a broker that enables you to interact directly with the market as opposed to sending your trading orders to a trading desk as this wastes time and hence you may miss out on bid opportunities. You need to also look at what trades spreads the broker has. As a trader to be successful, you need to get a broker that has competitive spreads.

Another crucial thing you need is a broker that uses great platforms and tools. Cm trading was one of the best forex brokers in South Africa in 2017 and reason being it uses a great platform, has great educational materials that it offers its clients and its services are exemplary. You, therefore, need brokers that offer you a wide range of services and give you tools at your disposal to use to become successful at trading.

  • Consider your needs

How you intend to go about trading will go a long way in your ultimate success.  If you are trading very small moves or the bigger moves you need to know the brokers that are best fit for that. If you are going for forex scalping as a way of making money then you need to get an ECN broker depending on how much capital you want. In short, let your forex broker fit your needs meaning that you should first evaluate what you need before going out of your way to find a broker.

Conclusion

In the international currency market, it is essential to work with the right forex broker to be successful. As a strategic investor, you may definitely be looking into having a specific tool; platform and research that you may want to have to enable you to achieve your goal. Another factor that will determine which broker serves you better will be your investment style. It is therefore very important to do your research well, know what you want and need to make money and then go for the broker who is aligned with your own goals.


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