With so many brokers out there, it can be hard sometimes for new traders to know where to put their hard-earned money. Here are a few things to consider when deciding who to trade with.
Minimum Deposits
The first thing you need to decide is how much money you want to trade with. The amount of money you put in as your first-time deposit will determine to an extent which brokers you can open an account with, the trading conditions that will be available to you, and the level of trading and educational support you will get. You need to consider what you can afford and what benefits that you might want with your account.
Trading Conditions
The next thing to consider is your potential transaction costs. Cheap trading can be hard to come by. You’ll see a lot of brokers promising tight spreads and low commissions. Don’t take their word for it. Do your research. By now you should have shortlisted a few brokers and the only way to know where to find the lowest trading costs is to compare what’s on offer.
Funding
Make sure that the broker you choose offers a wide range of payment methods and quick withdrawal times. This might not seem like a high priority when you’re just starting out, but it’s important to be able to move money in and out of your account easily. You’ll also want to choose a broker that keeps client funds in a segregated account. This means that your money would be held separately from the company’s money and would not be used for operational purposes.
Regulation
Many countries have regulators that monitor how brokers treat their clients. Regulation ensures that brokers behave in a way that puts the clients’ interests first. It impacts many things such as the way a broker presents its services, the clients it’s allowed to onboard, the trading conditions it’s allowed to offer, and the way it protects traders’ funds. Choosing a regulated broker is an absolute must if you want to be sure of getting a high-quality service.
Reputation
It’s probably best to choose a broker that’s been around for a while. They’re more likely to have a quick,
straightforward sign-up process. You’ll probably also get better trading support. If you want to know what you can expect from a broker, it might a good idea to also check out a few broker reviews. These will give you an idea not only of their reputation, but also of how they treat their clients.
Final Thoughts
These are just a few pointers to guide you with your research. Picking a broker is probably one of the hardest and most important decisions you’ll make when you’re just starting out, so be sure to do your research and choose wisely. To help you with your research, we have created a list of forex broker reviews. These reviews will help you understand how good each forex broker is, what trading conditions they offer, and what support they provide to new trader.
You can read our forex broker reviews here. You can also find more helpful educational articles here.
