BrokersMinutes

How to Choose a Forex Broker

Are you ready to open a live account and trade real money with a forex broker? Take a look at these factors you should consider in choosing a forex broker.

The forex industry is a fast-growing one and there’s an overwhelming amount of brokers that are already in business or are setting up shop. The sad truth is that not all of these forex brokers are doing honest business, as some may be “bucket shops” or scammers that are out to take your money.

Make sure you’re depositing your hard-earned cash with a reputable forex broker by choosing one that is regulated by the CFTC (Commodity Futures and Trading Commission) when in the U.S. or other regulatory agencies in offshore brokers. In Australia, ASIC (Australian Securities and Investment Commission) is in charge of regulating forex brokers in the country while FSA (Financial Services Authority) regulates those in the U.K.

It’s important to conduct business with a regulated forex broker because they are required to keep clients’ money separate from company funds and are also required to comply with capital requirements. Regulatory agencies make sure that brokers always maintain sound financial structure and that their employees are supervised against unlawful activities.

Another important factor to consider when choosing a forex broker is its customer service. Since most brokers offer online platforms and are open for trading 24 hours a day, their customer service should also be easily accessible online at any time of the day. This is because you might be opening an account with an offshore broker and might need to talk to customer service to settle account issues outside of office hours in their area.

In addition, having a reliable customer service builds good trust between a forex broker and its clients. You should be able to contact them easily if there are disputes regarding your trades executed or orders that aren’t filled.

Lastly, reviews from other traders definitely help in finding out about a broker’s reputation. After all, they’re the ones who have already had experience trading with that particular broker you’re considering so it’s best to get information first-hand from their reviews. They may have a few things to share about the broker’s quality of service, ease of using the platform, slippage, or bid-ask spreads.

There are several resources online that display these reviews on various forex brokers. A little research goes a long way when it comes to making sure that your funds are secure and guaranteed from fraudulent activities.