5 Aspects to Look For When You Select a Forex Broker

Today, you can manage every aspect of Forex trading right from the broker's platform. A huge variety of options offered by Forex makes it difficult to make the right choice. While there is no such thing as "the best Forex broker," you just need to choose the broker that suits you best. In order to make the selection process easier, you will need to focus on certain aspects. What are they?

Regulation of your Forex broker

Regulation by official authoritative bodies in Singapore, Australia, or the UK is one of the major characteristics of a reliable trading broker. These countries keep the finance industry under control by following strict terms of compliance. City Index, CMC Markets, and Saxo Bank are considered to be brokers with the proper regulation.

Markets offered by your Forex broker

Apart from the Forex market, you surely want to try your chances in other markets. Luckily, most Forex brokers offer you access to a few common commodities like oil and metal. FXTM and AvaTrade allow you to proceed with commodity trading that covers the most exotic markets.

Live support provided by your Forex broker

When it comes to any kind of online service, live customer support must be available 24/7. No matter how experienced you are, you may face some issues that you won't be able to sort out without professional help. This is why you should pay attention to the availability of customer support and communication channels offered by your broker.

Reviews left by customers

There is a well-known rule not to trust everything you see on the internet. At the same time, online content happens to be a valuable source of information where you can get a second opinion on different products and services. Ideally, you need to check reviews left on independent sites where traders share their personal experience with this or that broker. Of course, you need to be smart about it by reading between the lines.

Simplicity of financial operations

Forex brokers' spreads are quite low. But it is not always the case if you are a day trader. Then, brokers may offer you a commission plus a tight spread of approximately 0.1 or 0.2 pips. Paying a commission and a small spread will be cheaper than paying 1 or 2 pips fixed-spread without commission. If a broker offers you a 1 pip spread on EUR/USD, you will pay 0.3 pips more than the other broker with a commission strategy. While estimating the possible cost of your cooperation with the selected broker, you will need to add up the total costs and see which one is cheaper or more expensive. This is especially important if you are going to make 20-30 trades a day. All these little spreads may grow into a considerable amount in a couple of months.

What to do if something goes wrong?

What if you are already registered on one of the Forex brokers, but you had to stop out of a trade without wanting it. Is there any way out if something goes wrong in Forex trading? Usually, there are two ways to sort out the problem.

Method #1

Let's say, your broker increased the spread by 50 pips, so you got stopped out. But when you check another broker's offer, you notice that this kind of unexpected increase didn't occur there. In order to protect yourself from the possible trading mess, you should screenshot the chart of the trade that got stopped out of. This way, you will have a case to argue with. Why were you getting stopped out on your broker's platform? Why did this negative trend happen only on your platform? These are the questions to be answered. The case will be processed by the broker's customer support.

If there isn't any response or resolution, you can make things public by leaving negative reviews on the Internet and writing to different social media channels. If things are legit, people tend to support the underdog by sharing your post with others. Eventually, the broker will have to give a reaction to the whole situation.

Method #2

Another way to protect yourself from the possible trading mess is to refer to the authoritative body that regulates the broker. By sending your complaint to them, you should underline the fact that the broker is not dealing with you fairly. Brokers that are serious about their reputation will want to keep their license and lose traders' trust. Eventually, they will try to smooth things over by satisfying your demands. This is probably the fastest and easiest way to achieve the desired result in such an unpleasant situation.

Conclusion

Choosing an online Forex broker for trading is not as difficult as it seems. Forex offers a whole bunch of options to choose from. The main point is to find the one that addresses your personal needs and preferences. Before deciding on a reputable broker, make sure to conduct thorough research. Make a final decision that relies on the collected information.