Whether beginning your journey as a trader, or just looking to improve your broker experience, you’ll likely find yourself bombarded with ads and information that points you in conflicting directions.
While choosing the right broker can take a lot of time, there are a few key considerations that will ensure you choose a broker that’s best suited to you and your trading experience.
First and foremost, you will need to ensure that your broker offers the instrument or Forex pairs that you wish to trade. For example, you might prefer to trade exotic forex pairs or specific indices, or something completely different, so it’s important that you make sure your broker offers the instruments that you intend to trade.
Secondly, you’ll want to find out what trading platforms your broker can offer you. Some people prefer a web-based trading platform, others might prefer MT4, while others choose to use a proprietary platform. Generally speaking, MetaTrader 4 is the most popular platform and is widely offered by almost all Forex brokers.
When choosing your trading platform, it’s important to consider what tools you intend to use. Will use indicators as part of your trading strategy, or will you draw trendlines? Will you trade manually or using an EA? The tools available on your platform of choice will greatly affect the broker best suited to your requirements.
Another important consideration is the quality and reputation for customer service. If any issues arise with your trading account, or your platform you need to be able to get in touch with your broker to ensure that any issues are handled promptly and efficiently, so keep an eye out for a broker with a direct phone contact or instant live chat.
Next you’ll want to think about things like execution and trading costs. Regardless of your trading strategy or instrument of choice, there are always transaction costs. For each trade you place you’ll have to pay either a spread or a commission, depending on your account type. Choosing a broker with tight spreads will greatly reduce your trading costs.
When it comes to the execution of your trades, you’ll want to make sure that your broker fills your orders at the best possible prices. Under day to day market conditions, there is no reason why your broker shouldn’t be able to fill your order at the price you see when you hit buy or sell.
Last, but certainly not least when choosing the best forex broker, is security. Your broker must have a high level of security when it comes to your data and of course, your money. That’s why you need to ensure that your broker is regulated. In Australia, that means that your Forex broker should be regulated by the Australian Securities and Investment Commission, or ASIC. Secondly, you’ll want to make sure that the broker you choose keeps client funds in a segregated account.
To help find the best broker for you, it’s important to do your research. By choosing an award-winning, regulated Forex broker such as Vantage FX, you can rest assured that your funds are secure and you’ll enjoy a completely transparent trading environment.
Source: Vantage FX Blog