The journey of any new forex trader starts with the choice of a broker. It is a broker that provides access to the world of online financial assets trading, and as such, choosing the right one can help you get started with your trading adventure the right way. A good broker will provide a quality trading environment that will ensure you only worry about what matters – your trading activities. An unreliable broker, on the other hand, will have you in for a very bumpy ride regardless of your level of trading knowledge, skill, or experience.
As the first major decision for any online trader, it is important to get choosing an online trading broker right.
Here is what to consider:
By all means, you want to avoid a shady broker, and regulation is a good first sieve. A top-quality broker must be highly regulated. Regulated brokers generally offer transparent services because the various relevant regulatory agencies have standard requirements that have to be met before they issue licenses and authorizations. Such conditions include holding customer funds in segregated bank accounts as well as agreeing to random platform checks by the regulators. The regulation also ensures that in the event of a conflict, there will be an arbiter whose sole purpose is to look out for the interest of investors.
A broker’s trading platform is the software that allows you to open, manage and close trades for financial assets online. It is an important consideration because it is where you essentially conduct all your trading activity. When assessing a trading platform, you should consider multi-device accessibility, user-friendliness, available tools and resources (charting, indicators, graphical objects), functionality (order types, execution speed, automated trading support, tradable financial assets (forex, stocks, cryptocurrencies, commodities, etc.), as well as applicable trading costs (spreads, swaps, rollover). A good trading platform will be reliable and provide optimal conditions for implementing your trading strategies.
A broker is your partner in your online trading journey. As your partner, your broker should be able to provide extensive support to help you carve out a successful online trading career. This includes providing handy and comprehensive resources that will boost your trading knowledge and activity. Some of the useful resources provided by brokers include educational materials (eBooks, videos), periodic market analysis and reviews, an economic calendar, trading calculators, technical analysis tools such as Trading Central, expert signals and market forecasts, demo accounts as well as risk management tools.
Another important resource for a broker to offer is reliable and professional customer support. Like any other service, things can sometimes go wrong, such as receiving a wrong statement, a platform mishap, or even a delayed deposit or withdrawal. In such a scenario, it is important to know that you can reach your broker as soon as possible and that your issue will be resolved quickly and professionally. Ideally, customer support should be multilingual, professional, highly responsive, and above all, human.
A good broker will make available a variety of safe and secure payment methods for traders to deposit and withdraw funds from their accounts with ease and convenience. Most brokers have seamless deposit procedures, allowing traders to start trading online within a short time after completing a successful payment. The problem, however, comes when traders wish to enjoy their profits. A reputable broker will ensure the withdrawal process is smooth and hassle-free so that traders can reliably plan their finances along with their investing goals.
As with any financial service, reputation is very important when choosing an online broker. You want to be able to trade with a reputable broker to protect yourself from several unethical things, such as identity theft, trading platform manipulation, or even opaque trading services. Generally, a broker with a strong reputation inspires confidence and will let you trade with maximum peace of mind. Some of the best indicators of a highly reputable company include multiple regulations in major jurisdictions, top industry awards, time in the market, as well as positive reviews online.
The importance of trading with a good online broker cannot be gainsaid. Traders should, therefore, perform due diligence to ensure they sign up with a broker that will not sabotage their trading journey. A good broker is like a good partner in the online trading scene, providing you with all that you need to achieve success with your trading activity.
The above article was written based on the materials by AvaTrade.