To start with forex currency trading, you first need to find a broker. Selecting the right one is a time consuming and challenging process because there are literally hundreds of forex brokers to choose from. The best way to make a selection is to know what criteria to use for making your choice. While it is true that priorities are different for every trader, but there are some features that are essential to every trader. You need to ensure that the broker you choose has these features before you make your final decision. Want to know what these features are? Take a look below:
- Regulatory compliance
A trustworthy broker is one whose activities are governed by an official regulator who can protect and ensure the integrity of brokerage operations. Regulatory bodies are found in countries all over the world and they have established rules and standards that a broker has to comply with in order to be regulated. These rules are designed to provide protection to the clients and to ensure transparent and quality services are delivered by the broker. Depending on where a broker is based, traders need to look at their credentials, find out when they were licensed and check their overall reputation and operational history.
- Safety of funds
One of the most important features that you need to look for in a broker is their policy regarding the safety of your funds. It is understood that you will have to deposit money with them in order to begin trading, but how will your money be protected? What if the broker uses your money for their own operations or what if they go bankrupt? Regulated and reliable brokers, such as RoyalStox, ensure safety of funds through segregation of client accounts. This means client funds are kept separate from the brokerage’s accounts, which prevents misappropriation. Likewise, there are also compensation schemes and insurance policies in place to reassure traders about the safety of their funds.
Brokerage fees refers to fees that a broker charges for their services, which are aimed at facilitating transactions in the forex market. The amount of fee that a broker charges will depend on several factors, like the type of broker and the service for which the trader signs up. Some brokers also charge commission, but it is important to remember that these can vary, depending on the trade whereas fees represent a fixed charge. Furthermore, it is also essential to bear in mind that price is not everything and you shouldn’t compromise on other features just to get a lower cost.
- Trading Platforms
The trading platform acts as the gate between the trader and the markets. It is also the tool used by traders for performing their trades. Therefore, it is a given that you would want a fast, simple, cutting-edge and user-friendly trading platform. Before signing up with a broker, it is important to check what kind of trading platform is available and whether it is equipped to help you trade in the market of your choice.
- Ease of Deposits and Withdrawal
It is highly important for a trader to be able to make deposits and withdraw your money from the broker as easily and quickly as possible. This will depend on the type of deposit and withdrawal methods supported by your chosen broker. There are some brokers like RoyalStox that do offer a diverse and large selection of payment solutions for the convenience of their clients while some will give very limited options. In addition, you should also take a look at the withdrawal time because it might take a long time for you to be able to withdraw your money, which can be quite frustrating.
- Customer service
One of the few factors that are equally important to new forex traders and experienced veterans alike is customer service. Whenever you run into any sort of problem with your broker, you will require help right away and it is the duty of the customer support representative to resolve the issue. Thus, the availability, skills and expertise of the customer service staff is an important factor to consider when you have to choose a forex broker for your trading needs.