There is no learning ground as vast and as incomprehensible as the forex trading niche. Even though forex trading has been around since forever, relatively speaking, there is always something new to learn with each passing day.
Even though the importance and relevance of forex trading as a reasonable and viable source of income (or side hustle, as the case may be) it has been duly and fully established, it has only continued to gain increasing importance and relevance as the world continues to change due to the effects and impact of the COVID-19 pandemic.
Those who are intimately familiar with the terrain know for a fact that there are few better ways to actually make good money than with forex trading. Having said that, harvesting and harnessing the vast potentials inherent in forex trading niche to make good money is easier said than done.
Setting aside the fact that there is much for you to constantly and consistently learn and relearn, there is a big decision that most traders don’t give enough recognition and acknowledgement. That decision is choosing who will serve as your forex broker.
No matter how skilled you are with forex trading, if you don’t have a good forex broker, all your experience and expertise will be for naught. This is because, should you fall into the hands of an unscrupulous or dubious forex broker, you could end up having your funds stolen.
So, how exactly do you make sure that you pick the right broker for you the first go around?
Here are a few foolproof tips you can follow to ensure you fall into the hands of a forex broker that will treat you right.
Determine What You Want First
Before you go out hunting for any forex trader at all, you need to first of all know what it is exactly you want. By properly highlighting your wants and needs, you can better identify what it is you want in your broker.
You can start by asking yourself a few critical questions like,
- How extensively will you be practicing day trading a lot? Will you be doing it relatively frequently or would you only indulge in that only from time to time?
- How intensively will you be trading? Would you be making very large moves or will you be only trading very small moves?
The reason for deciphering your needs so thoroughly is that many brokers trade in categories. For instance, certain forex brokers deal better with traders that capture big moves. So, if you trade small moves and you get such a broker, you can see how things might not go well.
In essence, your capital is vital when selecting the best broker for you. In addition to this, it’s also vital that you evaluate the deposit and withdrawal method of the forex broker. As there are several ways you can do this, make sure that you choose a broker who uses a system that is compatible with you.
What Do You Want From Your Broker
Having sufficiently established in detail all the things you expect from a forex broker, you are able to automatically filter the broad spectrum of brokers down to a smaller list of individuals who fit the bill.
Now, you need to go into what you need in a more thorough manner. Let us take an example. If you are a day trader for instance, you cannot afford to get a forex broker who operates a dealing desk. This is highly counterproductive for your plans to turn a profit.
The reason for this is because you will always want your orders to be executed prompted and with immediate alacrity, not wait for an unknown period of time on someone’s trading desk.
If you fall victim to this as a day trader, don’t be surprised if you get a lot of re-quotes owing to the fact that the price of what you want to purchase would have changed since when last you placed your order.
Do well to ensure that your broker is not only fully registered with the appropriate bodies and works in a well regulated financial environment, also make sure that your broker is someone who has ample space and time to entertain the level of workload you’ll be bringing to the table.
Make Sure You Look at Reviews Objectively
It is normal to do at least a cursory search on the internet of whatever forex broker you intend to employ in your service. However, as you can imagine, the internet is crowded with a lot of information in that department, and not all of it is as reliable as you would like.
For instance, if you were to do a Google search on a particular broker, you would most likely come across a lot of reviews, particularly on many online discussion forums. Now, unless these reviews are from websites that have a high authority and are well-known for supplying credible information, you shouldn’t believe those reviews, whether they be positive or negative.
What you need to realize where this is concerned is that to lose money while trading is only natural. However, many traders find this fact very difficult to act. This is even more so the case if the loss of money was the trader. Naturally, many traders would never accept this. As such, they put all the blame on their broker.
So, the best thing you can do is look through these reviews and do what you can to not let them influence your decision too strongly.
Make Sure You Vet Your Broker Properly
How long is the list of eligible candidates to be your forex broker now? It should be relatively shorter now. To make it even smaller, try to carry out a series of tests to ascertain the level of integrity, dedication and availability of your broker.
Lastly, it is important to consider expertise and experience when picking brokers. So, click here to find the Best ECN Forex Brokers in the industry today.