If you’re a beginner trader and explore the broker market, there’s only one question on your mind – namely, why are there so many brokers and which one should I choose?
While semi-experienced traders know what to look for in a broker, beginners might have no idea what factors to take into consideration. This is why we’ve prepared this article – to help those in need choose their first broker.
As such, without any further ado, let’s take a look at the things that you have to take into account. If you already know them and just want to see a selection of reputed brokers, more info can be found online.
Choose a Regulated Broker
First and foremost, you have to make sure that the broker you choose is regulated by the proper financial authority. In the US, for example, most brokers are usually members of the NFA (or, in some cases, regulated by the CFTC).
Such information should be displayed in the about section of the broker’s website and should also be more detailed than you expect. This means that the broker, besides mentioning that they are properly regulated, should also display their regulation number/certification and so on.
Look for Essential Features
The trading account that you’ll be provided with must not be limited. It must be equipped with any feature that you might need, along with all the essential ones, of course.
For instance, you must have a clear view of the broker’s leverage, as well as of the margin that they practice. Their initial deposit requirement should also be displayed, and withdrawals and deposits should be rather straightforward – without any potential complications.
Check Forex Currency Pairs
Since most people trade forex, it’s essential to check what currency pairs your chosen broker offers – especially if you plan to trade forex in the future as well.
Given the nature of brokers, they might offer a significant amount of currency pairs. However, don’t let this fool you. More pairs doesn’t mean a better reputation. A professional broker will always provide its traders with the most common and popular currency pairs, such as USD/EUR, GBP/USD and so on.
Customer Service Quality
Forex markets are not only open when people have time to trade. The currency market is open all day long – ready to provide both pleasant and unpleasant experiences. As such, a trader should be able to rely on their broker’s customer service no matter the hour.
To find more about the quality of a certain broker, beginner traders can easily read reviews or, if they wish to, interact with the customer service support team themselves.
The Bottom Line
Last but not least, it goes without saying that the broker must use a reputable trading platform to conduct business. For example, the platforms under the MetaTrader name are known to be the best available, as they offer traders everything that they might need in their trading adventure.
If the broker that you’re interested in ticks off all of the above, then you might want to give it a shot!