One of the primary concerns when starting on Forex is which platform for trading to choose and which criteria to consider when picking the best one.
Choosing a Forex broker is the first step toward a successful and sustainable Forex trading business. In order to choose a good broker, there are essential criteria to take into account: regulation and commission levels. But the choice does not stop at choosing a regulated or cheap forex broker! Other, more subtle criteria come into play such as if they offer balance sheet hedging. Find out which ones are in the following paragraphs.
Table of Contents
1. Trading platforms reliability
A good forex broker offers reliable, efficient, and flexible trading platforms. The best brokers generally offer the MetaTrader platform (4 and/or 5) in desktop and mobile versions. MetaTrader 4, for example, is already used by more than 10 million traders worldwide and has a huge community of forex traders. To be sure, do not hesitate to open a demo account to test a broker’s platforms from start to finish.
2. Quality of reading orders execution
A reliable forex broker is a broker that executes orders at or near the trader’s target price level. The main problem of the forex trader, the “requote,” occurs when an order cannot be executed at the requested price, resulting in the trading platform proposing another price. Good execution quality also avoids other problems, such as slippage or excessively high spreads during periods of market turmoil.
4. Spreads and trading commissions
Choosing a forex broker with reduced spreads allows you to make more profitable trades. Choose a broker that demonstrates transparency by displaying spreads for all negotiable instruments: minimum spreads and average spreads. Also, pay attention to other secondary tariff lines such as swaps (holding interest), inactivity fees, conversion commissions… These additional costs can considerably reduce the profitability of your trades!
5. Account types
A good forex broker generally offers several types of accounts to allow the client to evolve under the trading conditions that suit him. For instance, Mega Markets brokers offer their clients four types of trading accounts: Bronze, Silver, Gold, Premium, and Platinum. You can read more in a detailed Mega Markets review. For the novice trader, a limited risk account will be ideal as it offers both negative balance protection and protection on every trade. As they gain experience, they can switch to an account with faster execution and lower spreads.
6. Customer service
A serious forex broker puts customer service at the heart of its concerns. So choose a forex broker that offers a sufficient range of contact methods: telephone, email, instant messaging, and social networks… with sufficient availability (for example, from 8 a.m. to 8 p.m. Monday to Friday).
For the responsiveness and professionalism of the broker’s customer support, do not hesitate to examine customer feedback on certified review platforms such as TrustPilot. Moreover, before registering and starting trading check out for yourself the efficiency of the clients’ support for the specific broker. You can reach them via email, phone, and chatbots without opening a trading account.