The decision of which broker to choose is a crucial one and one that will strongly affect your trading future and its success or failure. You are giving all your trading capital to that company, with the expectation that you'll be able to trade with it and withdraw it when it is time to take your profits. With hundreds of Forex brokers to choose from, selecting the right one can be both challenging and time-consuming. The Forex Market provides benefits to some while others are left with huge losses. That is why you need the help of a Forex broker to help you make the right decisions at the right time.
Your choice of forex broker should reflect your trading aspirations. This is primarily one of the most significant differences between trading as a newbie and doing so as an experienced trader. While a skilled trader already has all of these figured out, you are battling to grasp the simplest of them. The market is full of different kinds of brokers. You will come across the well-intentioned brokers, those with ulterior motives, and those who enter the market with the sole intention of swindling you of your hard-earned funds. As such, choosing the right broker is not as easy as it may seem, at least, not without knowing what to look out for.
Here’s a checklist of things that you should look for:
- a professional and functioning website with all the necessary info;
- a responsive support team and several different ways you can reach them;
- no sketchy looking ads, images, quotes or bonus programs;
- good trading conditions with a wide range of tradeable instruments with deep liquidity and low spreads;
- a fast trade execution time;
- low commission fees;
- several ways for deposits and withdrawals;
- deposits and especially withdrawals should be fast;
- strict regulation;
- offer you guidance or helpful services/tools/analysis to facilitate profitable trading.
Part of your research in choosing a broker should be looking at written reviews of the broker as well as discussion forums. Be wary of these though. Unless the information comes from a credible source, and most forums are not credible sources, you are likely to find fake reviews, both positive and negative. Most day traders will lose money, and since most traders can't admit that to themselves, they blame others when it happens to them. Just because someone complains about losing money doesn't make the broker they were using bad, even though the writer may blame the broker. Look up what people are saying, but maintain objectivity. Lots of false information gets published with no credible reference.
Finding a good forex broker can be stressful. But be patient and take some time for searching and testing different options. Do not rush, because this can lead to financial disaster. In the end, if you have the right service at your fingertips, you will be able to spend more time on creating your financial strategy, developing a detailed analysis, and doing what it takes to succeed in the forex market. Brokerage selection is a time-consuming task, but a necessary time investment into your eventual success as a Forex trader.
