What Makes a Good Forex Broker?

When comparing Forex brokers there are a few important things to consider. Any broker worth their fees will offer favorable Forex services and perks such as expert training and customer support, relatively low spreads, ample trader-centric options for leverage, an easy-to-use web-based platform and will be regulated and in good standing.

It is important to remember that the broker you elect to work with will be using your money to trade and you, in turn, will be paying them for their services. This makes doing your research beforehand paramount.

How do you compare Forex brokers?

While you might elect to undertake your own strategy and manage your own trading, remember that doing so means not having access to the advice and expertise of the leading Forex brokers. For ‘newbie’ traders tutorials, online classes, and other tools can deliver great results.

Here are a few questions you may wish to ask when researching a Forex broker for comparison.

1. What currencies am I able to both buy and sell in?

2. Which countries is the broker regulated for?

3. What trading platforms does the broker offer? Are they available on a mobile device?

4. How are withdrawals and deposits managed?

5. What degree of customer service does the broker offer? When is customer service available?

6. What bonuses or perks or value-added services does the broker offer?

This is only a handful of the questions that any potential client of a Forex broker will want to ask when comparing brokers. Some other criteria that might help sway the decision include:

• Regulatory Authority Compliance: Don’t be afraid to ask for proof of regulation. Working with regulated brokers is the easiest way of protecting yourself from fraud.

• Capitalization: When researching potential brokers to open a trading account with, the broker’s capitalization should be consider of utmost importance. If a broker has problems with their capital, it may not be wise to trade with them.

• Variety of trading Platforms and what works best for you: There are literally hundreds of trading platforms available, however, only a handful of them are considered ‘popular’ or ‘worthwhile.’ Be sure to test out a demo account so that you can gain insight into what the platform has to offer and how user-friendly it is.

• Type of accounts available: The leading brokers offer a variety of account options. They could be demo, standard, mini or even micro. Good brokers will explain the pros and cons to each.