Tips on finding the Best Forex Broker

Choosing a forex broker is the biggest trade you’ll make. Having solid trading methods and expertise is not enough to succeed in this field. Think of it this way, if your forex broker runs off with all your hard-earned money, all the strategies you put into use were good for nothing. We will go into depth on choosing the best forex broker to meet your needs and help you reach your financial goals.

Tips on finding a forex broker that fits your needs:

• Consider your needs – The number one aspect to keep in mind when choosing a broker is to keep your needs in mind. Know what is important to you; here are some points to consider 
• Will your trading be full-time or part-time?
• Are you interested in small or big moves?

If you’re interested in capturing small moves, consider an ECN broker. The commission will be paid to them based on trades, and the spreads will be tighter, which matters when dealing with small moves. If this is not the case for you, there is still a wide variety of potential brokers to choose from. 

Choose a broker according to your account type, one that matches your capital. In regards to deposits and withdrawals, different brokers offer different services. Do your research and choose a broker that fits your needs.

What should the Broker offer?

Now that you put your needs into perspective and know what you’re looking for, we can look at what each Broker offers.

No “dealing desk.” Suppose you’re planning on becoming a day broker. You want to be in direct contact with the market. A “dealing desk” sends your order to a trading desk, which then initiates the market. The process is long and often can lead to “requotes.” This occurs when you want to place an order, and the Broker asks if you wish to go forth with the process and because of the delay, the opportunity is lost. 

Be sure your Broker is located in a country with a well-established financial system. Brokers licensed by the US, UK, Canada, Japan, New Zealand, or Australia are frequently at the top of the list.

Look for a broker with availability. Send emails, ask questions to several brokers, and monitor how thoroughly they respond. If the customer service doesn’t fit your needs, eliminate that Broker from your list. 

Be aware of “losing trader” reviews. Part of your research in finding the right Broker should be looking at reviews of brokers as well as discussion forums. Make sure the information you come across is from a credible source – if not, you’re likely to find fake reviews. 

Just because someone loses money doesn’t make the Broker bad. Do your research and maintain objectivity. False information is always getting out and often without a credible reference. 

The Test

Test out the Broker yourself. Your list of potential brokers should be smaller at this point. Before finalizing your decision, test out the brokers you have your eye on. 

• Open a demo account first and take note of the conditions offered. Your orders should be executed instantly, and spreads should be tight. Take note that the platform is working efficiently and not crashing multiple times. 
• If the demo works for several weeks, take another step. Open a live account and deposit a fraction of what you intended to deposit. For example, you would put in 1,000 instead of 10,000.
• Trade the live account with your deposit for two weeks. Continue to evaluate customer service throughout this time by asking them questions and seeing how quickly they respond.
• Initiate a withdrawal to see whether it can be done quickly.
• If everything has gone smoothly up until now, you’ve done your testing and have found a successful broker.
• Avoid “bonuses” – When opening a live account, avoid any bonuses they may offer. Nothing comes for free, by accepting a bonus may interfere with a withdrawal because some of your money is now the Broker’s money.

Closing Thoughts

Choosing a broker is an essential step before starting your trading journey. You want to make sure you will have the proper guidance and support from a professional. We hope we were able to narrow down some of the steps that are included in the process. Good Luck.