As a forex trader, the greatest decision you will ever make is your choice of forex trading broker you decide to deposit your funds. This will go a long way in determining if you will be successful as a forex trader.
Hence it is important to sit down and do your due diligence in selecting which best forex trading broker you will go with. There are some scam brokers out there who will make the withdrawal of your profits difficult or will not even process your withdrawal request at all. Here are a few tips that can help in choosing the best forex trading brokers;
Consider Your Trading and Style and Needs
- Are you going to trade very or bigger moves? Are you a day trader? An ECN broker is most appropriate for you if you day trade a lot with targets on capturing small moves. The spreads for ECN accounts are tighter with a reasonable commission for entering those small moves.
- ECN brokers are also good for traders who love scalping.
- How much capital do you have? If you are starting with small capital, choose a best forex trading broker that has account type that matches your capital; go with brokers that will allow you trade micro lots. Mini lot is good for an account of over $5,000 and you can start trading standard lot size for accounts above $50,000.
- Consider forex trading brokers whose withdrawal and deposit methods align with conditions most suitable for you.
What Should a Good Forex Trading Broker offer?
Now that you know what your trading needs are, check out brokers who have offers that meet these needs and narrow down your choices. A best forex trading broker should offer the following;
- Dealing Desk: Trading with a dealing desk broker is what causes requote as the broker serves as an intermediary between you and the market; with this type of brokers your trades are not executed immediately you click buy or sell. As the price may change between the time you clicked and the time your broker is executing the trade. In this case, go with an STP (Straight Through Processing) brokers; With STP brokers, there is nothing like requote, they give instant execution of your trades in real-time.
- Regulation: Be sure that your forex trading broker is regulated in a country that has a well-established financial system. Select brokers regulated by U.K., U.S., New Zealand or Australia, Canada, and Japan. Those regulated Cyprus by CYSEC, for example, can still have problems. Pick brokers regulated by U.S., U.K., Canadian, and Japanese, New Zealand or Australian authorities, as examples.
- Spreads: If you are a day trader, so demand competitive spreads. For example, if day trading the EUR/USD during a major session expect the spread to be close to one pip with a non-ECN account. Two pip is too high; eliminate that broker as an option. With an ECN account, the spread should be half a pip or less during major sessions.
- Customer Support: Make sure your chosen forex trading broker are people you can relate with by being able to visit their office, send them emails, and call their customer support lines among others. If they don’t reply emails or pick calls, then you have to abandon such brokers and go for other responsive brokers. Do they offer 24/5 dedicated support? If they do then, that’s great!
- Leverage: Ensure they offer a flexible leverage up to 1:1000
- Slippages: This happens when there major news release on a particular currency. Slippages alter your entering and stops and this can affect traders. Execution Desk and Investigation.
- Transparency: Make sure they have a good Rollover Policy
SUPERIOR TRADING TOOLS
A good forex trading broker should be able to offer the following additional benefits;
- Technical Analysis by experts Trading Central
- Execute Trades directly with One Click Trading
- Breaking Market News and Analysis
- Free VPS hosting
- Free Educational Material
- Trading Calculators and Economic Calendar
- Auto Transfer – Instantly withdraw profits
Personally Test The Broker
You can test the trading platform of the broker starting with a demo account and try to see how good the platform is; its user friendliness, execution and many more.
Avoid “Bonuses” from your Brokers
Let your best forex trading broker be aware that you do not want any bonus, as some of the terms and conditions that come with these bonuses can affect your withdrawals.