Your success in currency trading largely depends on the forex broker you choose. There are many brokers to choose from and selecting a good one requires an effort, since among the good ones lurk the shady.
How can you find an honest broker that you can rely on with your money and profits? Which one will provide professional services? Will you receive what is promised? The basic features you should pay attention to are listed below.
Regulated brokers obey the strict rules of the authority body. There is more security to your funds, more professionalism towards handing traders requests, more integrity in trading. When a regulated broker doesn’t comply, a trader can file a complaint with the regulation authority and, with a good enough reason, the broker can be stripped off the license.
Fees, Security and Trading Terms
At the first glance, most brokers offer the same thing – major currency pair, relatively high leverage options, different account types, free demo for practice, professional charting, top-notch trading platform etc. If you dig deeper, however, you may find all kind of terms and conditions invisible to the naked eye.
“In order to withdraw your free bonus, you will be required to execute a minimum trading volume of 10,000 base instruments for every $1 bonus within 12 months. 50% of those volumes need to be traded within the first six months of receiving the bonus.”
There can be hidden fees or limits imposed on your deposits or withdrawals. An example of such terms and conditions are quoted below:
“… reserves the right to impose deposit limits and deposit fees in its system.”
“... reserves the right to impose withdrawal limits and withdrawal fees in its system.”
“The Company shall bear no liability if third persons gain access to information, including electronic addresses, electronic communication and personal data, transmitted between the Client and the Company or any other party, by use of the Internet or other network communication facilities, telephone, or any other electronic means.”
Do not be lazy to go over the terms. You may be surprised to find out just how much is hidden in what you are signing to.
How exactly do you sign to those terms? During registration you are always asked to mark the checkbox next to “I have read and agreed to terms and conditions”. This is how to legally agree to the terms of each broker.
Trading Features based on Deposit Amount
There are brokers that have different account types, based on deposit requirements and services provided. For example, you may find difference like this:
Minimum deposit - $1,000
Features - no extra fees; unlimited deposit; 10,000 lot size; currency, gold, oil, silver trading
Minimum deposit - $100
Features – extra fees applied; maximum deposit $1,000; 1,000 lot size; cannot trade gold, oil or silver.
Make sure you know the differences of the accounts before you choose one. You don’t want to start trading only to find that you cannot use this or that feature promoted on the broker’s website.
Technical and Customer Support
One of the most important characteristics that needs testing is personal support. Whether you have technical issue with the trading platform or have an enquiry regarding withdrawals, the broker has to provide decent support online, on the phone and via email. The last thing you need is a broker whose representatives do not understand your requests, or cannot give an adequate response.