• Welcome to your Forex Forum - share your currency trading strategies, news & tips!
    Sign up Log in

How To Choose The Best Forex Broker

Alice

Member
Want to start trading in forex? Well, one of the best forex trading tips for beginners we can offer is to get yourself a qualified and experienced broker.

Who is a forex broker?

A forex broker is a specialized financial services company that offers forex trading services. They are the company that represents your interests and helps you enter and exit trades on the forex market. Brokers act as middlemen, helping you find buyers or sellers as you need them.

Role of forex broker in forex trading


Brokers perform the following functions in forex trading:
  • They do comprehensive research about the market the trader is interested in and provide detailed technical analysis of trading avenues and profitability.
  • Buy and sell trades keeping in mind the financial goals of the trader.
  • Provide valuable advice to traders, specifically offering forex trading tips for beginners who need guidance in trading.
  • Promote the trader’s forex holdings to potential buyers.
In exchange for their services, the forex broker charges a few pips of the overall trade value from you as their commission.

Without the broker, it would be incredibly challenging for traders – especially beginners – to trade on the forex market successfully. This is why it's necessary to hire a broker for yourself at the earliest.

Forex trading tips for beginners who are choosing brokers


Here is a detailed step-by-step process of selecting a forex broker:

1. Check if the broker is regulated

A forex broker, when properly regulated, is a company that you can trust your money with. Regulation entails that your broker will follow government-mandated rules about processing your money, trading, data security and more. Plus, you also have the added security of seeking a successful legal recourse and outcome. This is because, the regulations will closely govern how brokers function, preventing any mischief.

2. Evaluate their past trader reviews online

Trader reviews are the best ways to judge the quality of a forex broker’s services. You can find reviews of brokers on their website, on Quora groups, on Reddit threads and so on. These authentic reviews will give you clarity on whether this broker is the right fit for you or not.

3. Identify what forex currencies they support

Not all forex brokers support all foreign currencies. Sometimes, some brokers support forex transactions only in certain currency pairs and not others. You’ll need to consider whether your shortlisted broker supports your preferred currency or not.

4. Check the trading platform they use

Forex brokers who use feature-rich and powerful trading platforms will be able to offer better services purely because of the capabilities of the platform. A trading platform that doesn’t contain many features and is rarely updated can make your work significantly difficult. When choosing your forex broker, ask to try the demo account a few times before you make your choice.

5. Evaluate the accounts they offer

There are three types of forex accounts - standard, mini, and managed. These accounts differ from each other depending on the amount of investment that traders want to make, lot size, the expected gains and the risks involved.

Brokers usually offer either one or all three types of forex accounts for trading. You will need to find out what your shortlisted brokers offer, so you can be certain that they are the right choice for you or not.

6. Evaluate their trading style

There are four types of trading styles in the stock market –
  • Position trading – Where the trade is held for a long time (months or years) before being sold to make long-term gains.
  • Swing trading – When the trade is held for a duration of a few days to a few weeks.
  • Day trading – When the trade is held for the entire day, to take advantage of the day’s best positions.
  • Scalping – Forex scalping is the process of entering and exiting trades extremely quickly, in a matter of minutes, to take advantage of sudden price volatility.
While large-scale forex brokers often have teams who specialize in different types of trading styles, smaller forex brokers may champion just one or two trading styles. You will need to evaluate your personal trading strategy to understand if the broker’s trading style matches your needs and trading goals or not.

7. Consider their charges

Forex brokerage charges depend on numerous factors:
  • The size of the trades.
  • What position it is held in.
  • The leverage the trader has.
  • The commission policy of the broker
At the end of the day, your charges shouldn’t eat into your trading profits. So, it’s important to identify whether the broker’s services are worth the charge and how important this broker’s facilities are to you.

8. Check the quality of their trader service

Having a robust and responsive broker is essential when you’re trading in forex. If you encounter a problem, you’ll need immediate support, otherwise you risk losing thousands of dollars during trading.

Customer reviews will tell you how good (or bad) the broker’s trader service/support functions are.

9. Evaluate their data security and financial security practices

When you trade, you give your forex broker complete access to your financial information and money. You need to be able to trust that the broker will protect your money and your sensitive information. This is important both during and after your association with them.

Before choosing a broker, visit their website and read through the fine print. That will tell you how they handle their customers’ information and how they maintain customer privacy.

10. Consider if they offer Forex education and forex trading tips for beginners

Finally, it's helpful to check if your shortlisted forex broker offers forex education or not. As the forex market grows more complex, getting access to the right forex knowledge is essential to ensure you are abreast with the times. When brokers provide forex trading tips for beginners, it is an additional benefit that they provide to make your trading experience better. A broker who doesn’t offer any information or insights can be very hard to work with, because you won’t have clarity about how they work in the first place.

So, when choosing a forex broker, check whether they offer forex trading tips for beginners, updated to the market’s current requirements and challenges.
 
Last edited by a moderator:

brendalloyd

Well-known member
Very informative. A bad decision about a broker can cost a trader heavily. I appreciate the parameters you’ve mentioned but i don’t go with the first point. I am not an advocate of regulated brokers because I feel that the concept of regulated brokers is overrated. You should only be able to differentiate between a reputable broker from a scam, otherwise, it’s just the trading conditions that matter.
 

jacquelynwhite

Active member
It is really important to have a thorough research about your broker before you start using them. Check their website, read what other users have to say about them and never skip a demo account even if you are an experienced trader. It will help you to test the waters before diving in.
 

Polakandil

Well-known member
Yes, it is good when looking, new broker, regulation is one important case when a looking broker, although it is not guaranteed will become a certainty, because there is regulated brokers but get negative feedback from traders due they face bad experience with them, besides all of above as consideration, usually trader will prefer to choose a broker that offers low spread trading fee.
 

brunildafulton

Well-known member
It is seriously a task to choose the right forex broker. Firstly, check if the broker is established. Secondly, evaluate the account features that the broker offers. Thirdly, know the commission and spreads of the broker, and lastly, how many range of currency pairs the broker offers.
 

ForexTrendy

New member
Great Info, i live in the UK and got stung a couple of times using overseas brokers that werent regulated in the UK. Im now using XTB and they are awesome...their platform is perfect for beginners and is really user friendly. And its regulated by pretty much every regulatory body there is lol
 

ellisdelgado

Active member
Checking online reviews is the first thing I do after going through a broker's website thoroughly. Knowing how good or bad experiences other traders had, helps to get an idea about the services.
 

louisegoodman

Well-known member
Choosing a forex trader contains many criteria, but first, you need to understand your trading style, strategies, and requirements. Then only you can choose the best forex broker who offers you all the services you are looking for.
 

brentcrawford

Active member
It’s very important to know your trading needs as well as the options for currency pairs available with the broker before choosing one.
 

diabolique

Active member
Indeed these tips are worth it. But when consistency, discipline, and hardwork is added to these tips, they can help out to win all the more.
 

Polakandil

Well-known member
Indeed these tips are worth it. But when consistency, discipline, and hardwork is added to these tips, they can help out to win all the more.
Maybe the most difficulties among traders are how to make a consistent trading profit, but the broker service also giving impact to the trading result of trader, the problem like as requote, slippage, and there is a broker that works against the trader like dealing desk broker.
 

LamarKenyon

Well-known member
Every person has different choices in forex brokers. The choice will depend on the method you are most comfortable with, the amount of capital you are willing to risk, and your trading goals. You can choose the best forex broker by reading reviews and comparisons. Reading these things will help you understand what to look for when choosing a broker.
 

geraldinemarsh

Well-known member
It is important to first assess your trading requirements and then look for a broker accordingly.
Absolutely! Like fast order execution and low spreads might not be an important consideration for every trader but for scalpers like me it's a must. Finally settled with turnkey forex for this very reason after trying out so many different brokers.
 

catherinacrowley

Active member
The most important thing to consider when choosing a broker is your own trading requirements. That will help determine if a particular broker is good for you or not.
 

Polakandil

Well-known member
The most important thing to consider when choosing a broker is your own trading requirements. That will help determine if a particular broker is good for you or not.
My first consideration when choosing FXOpen is this company regulated broker, then they provide support forum where the forum.fxopen.com included the biggest one forex forum community in the world, there are some interesting contests on the forum, and the second point is spread fee is very competitive.
 

PintoFire

Member
First, assess your needs. Find out whether it is the trading platform or trading costs that matter the most for you. Once you know that all, you will be able to make a good choice for yourself.
 
Talk to your broker’s customer support team before you choose them. A helpful customer support team is better than a broker with low costs in the long run.
 

Mercor

Member
You have to set your own criteria to be sure that you are making the right choice. A broker might seem to be good when you are reading about them but might not necessarily be the same when you actually start using them. Be careful about the choice you make.
 
Top Bottom