Traders need to work closely with forex brokers when trading in the foreign exchange market. Brokers provide trading platforms as well as execute orders on behalf of the trader. Your choice of broker can determine the amount of success you are able to achieve in the largest financial trading market of the world. Therefore, instead of making a random choice, you need to consider many things so that you are able to choose wisely and benefit from it.
As a beginner, you need to evaluate the brokers so that you are able to choose the best. You need to be aware that the popularity of the forex market has attracted several fraudulent brokers who make unrealistic claims. It is best to avoid them as you may lose your valuable time and money if you fall prey to their claims.
Important things that beginners should consider when choosing forex brokers
The most important thing that you need to check when choosing forex brokers is their regulatory status. The Australian Securities and Investments Commission (ASIC) regulates all brokers wishing to provide their services to traders in Australia. You need to ensure that the broker of your choice is licensed and regulated by ASIC. It is best to avoid brokers who are not regulated by ASIC, as they can be fraudulent.
After you have verified the regulatory status, you need to focus your attention on the trading platforms. You need to understand that each platform has unique features and functionalities and you need to make the choice as per your specific needs and requirements. If you are unsure about choosing the right trading platform, you can opt for a demo or practise account so that you are able to test the features and make an informed choice.
The trading accounts that are provided by brokers should also be taken into consideration when making the choice. Micro and mini trading accounts are considered best for beginners, as they may be able to trade only in smaller lots with these accounts. This can help minimise risks and maximise profits.
Apart from this, you also need to consider leverage and spreads when making the choice of brokers. It is best to choose brokers who offer you the most competitive spreads so that you are able to reduce costs of trading.
Customer service is important when choosing forex brokers
One of the common mistakes that most beginners do when choosing forex brokers is to ignore customer service and support provided by them. As the forex market is open all through the day, you need to choose a broker who may be able to provide you support whenever required.
It is advisable to call the broker so that you are able to ascertain how fast they respond. Timing is crucial for success in the foreign exchange market and if the broker is not able to respond to your problem immediately, you may lose the favourable trading opportunity available in the market. Good service and support can enable you to trade confidently and help you make consistent profits.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS