THE BEST ONLINE BROKERS IN THE FOREX MARKET
Finding a genuine and a nice broker can be quite challenging at first. Most people tend to choose brokers based on the hype they got from a google search or their friends. But have you ever asked yourself if that hype you were given really holds? Are there better alternatives out there that suits you and your budget?
A number of them claim they provide efficient and quality services to their customers but once you jump in it’s not usually the case. I can assure you that some of them are only after turning you into a cash cow for their own selfish gains without considering you. I recall the first broker I joined didn’t offer any deposit bonus and the withdrawal methods were limited in our jurisdiction. So how do I tell which is the best broker to use? Here are some of the factors you should consider.
Factors to consider when when choosing an online forex broker
- Whether the broker is licensed by regulatory bodies.
Regulations help to ensure that the forex market is a safe place for you to trade. It entails legal and financial standards that protect investors from fraud and hidden financial risks. Despite the fact that there is no central regulatory body that monitors the global market 24/7, regulatory entities exist in regional levels across the world. These bodies enforce the financial and legal laws as stipulated in their respective jurisdictions.
Check whether your broker is regulated by one of the following watchdogs:
– CySEC (Cyprus Securities and Exchange Commission).
– FCA (Financial Conduct Authority) of UK.
– ESMA (European Securities & Markets Authority) of Europe.
– ASCI (Australian Securities and Exchange Commission).
– FSCA (Financial Sector Conduct Authority) based in US.
– IFSC (International Financial Services Centres Authority)
– CMA (Capital Markets Authority) of Kenya.
- Account Types offered and their features.
Each forex broker offers a variety of accounts. These accounts come with specific features which vary from broker to broker.
Account Types: – Cent Account: For beginners.
– Micro Account: For those with limited budgets.
– Standard Account: For Experienced traders.
– Zero Spread: For those who require fast execution.
– Shares Account: For those who wish to buy shares
– Islamic Account: Compliant with the Sharia Law.
Features to consider:
– Base Currency Options: USD,GBP,EUR , plus local currencies.
– Leverage: Multiple leverages
– Minimum deposit and withdrawal amount: Recommended, $5
– Spread: Preferable as low as 1 pip.
– Minimum lot or order volume: Preferable 0.01
– Negative balance protection: Check if it’s supported
– Maximum pending/open orders per client: Preferable 200 positions
– If Hedging is allowed: Some brokers don’t allow hedging, watch out.
– No. of Multiple accounts allowed per user: Preferable 10.
- Trading Platforms Supported
Check the whether the brokers supports the following platforms.
– Meta Trader 4 (MT4): doesn’t support CFDs. Available on Google Play Store, Apple Store and also Desktop Versions.
– Meta Trader 5 (MT5): supports stock CFDs. Available on Google Play Store, Apple Store and also Desktop Versions.
– Web based trading platform: allows users to trade on their websites via the internet.
For any other apps supported by the brokers, make sure the app has all the tools required and that trades can be placed and closed instantly.
- Deposit and Withdrawal Mechanisms Supported
This is one of the critical factors to consider. You may not want to find yourself stuck with how you can transact conveniently. An ideal broker should support the following payment processors:
– BANK TRANSFER
- Educational Support and Materials
A good forex broker should have tones of educational materials such as webinars, You Tube videos, articles, pdfs to help inform and educate you on the best trading practices and stay up to date with the market.
- 24/7 Customer Support System
At any point in your trading journey in your trading journey, you may find yourself in a position where you encounter challenges related to your account. For example when you want your deposits or withdrawals are delayed. In such cases a responsive customer support system is crucial.
Ensure you locate their official social media handles since they provide a way to air your needs.
- Deposit Bonuses and Trading fees
This is another major factor to consider before choosing which broker to trade with. It’s always a good practice to do a check up on what offers the broker has for you. Such bonuses can bolster your trading and cution you from some market risks. Avoid brokers with punitive and unrealistic bonus packages.
Also check whether your broker covers the deposit fees, the withdrawal fees and the currency conversion fees.
You may as well check if the broker charges any commission from your profits. Avoid such brokers. Only swap fees should be charged by a broker. Some brokers do reward their customers for each turn around lot they trade, counter check whether your broker has any reward programs.