Currencies are undoubtedly the most traded assets of the moment. Forex is thus the most important market in the world. The emergence of trading platforms has facilitated access to the Forex financial market. Many online brokers offer good services to traders, in particular trading in the form of CFDs. The trading success depends on your understanding of what the Forex market is. But how to select the appropriate Forex broker that fits you best? Here are the main criteria to take into account when choosing the Forex broker that suits your needs.
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How to choose the best Forex broker?
If you decide or plan to trade, one of the very first things you will realize will most likely be the impressive number of brokers offering their services. The market is plentiful, and unfortunately, not all of them are successful. The stock and financial markets are very complex, and unless you choose a good broker, you are in serious trouble. Forex broker list gives you a great insight into basic info about the best brokers on the market today. To help you choose, we present to you below all the criteria to be taken into account when choosing the broker who will best support you.
Security of funds
Since you are about to entrust your money to a Forex broker, the least you can do would be to make sure that they have the necessary licenses. Only licensed and regulated companies can guarantee the security of your funds. A good broker must offer the necessary guarantees regarding the management of funds deposited by clients. In particular, the latter must keep clients’ capital in separate accounts.
The trading platform’s features
- Trading software – The ideal would be to choose a trader who offers you a well-designed and easy-to-use platform for your operations. Otherwise, it should provide you with MetaTrader 4, MetaTrader 5, or both. This software is the best known and the most user-friendly for Forex trade and trading other assets. However, there are the brokers with their own trading software, which shouldn’t be a shortcoming since they are competing for the best possible service.
- Multiple assets trading – The Forex platform should ideally enable you access to other financial markets, with the same advantages as currency pairs trading, for example, shares in the form of CFDs or emerging cryptocurrencies, including Bitcoin. That allows you to diversify your portfolio!
- Training opportunity – The best broker must offer adapted, progressive and qualitative training which is of genuine interest to each investor: tutorials, videos, webinars, and live trading, for example.
- Efficient customer support – Finally, concerning the trading platform, the ideal would, of course, be that the Forex broker that you choose has customer service in several languages with professional responsiveness. Quality of customer service is a point that should not be overlooked, especially if you are faced with a problem.
The level of spreads
Of course, we will naturally tend to prefer a broker with low spreads. But you should be aware that the spreads will vary depending on your trades. Therefore, you must assess the spreads’ level according to the transactions you plan to make since the spreads can differ from one trading account type and the traded amounts.
Order execution time and investment strategies
You should know that the quality of order execution is one of the most common problems with brokers. That’s because, between the time you place a buy or sell order and the moment the broker actually executes it, price variations can occur. A broker with low fees is great, but having your orders on time is even better.
The best Forex broker 2021 should not impose any limits on your style as a trader. In other words, you should have the choice to use whatever investing strategies you desire, regardless of your level and volume of investment.
