Steps for Selecting the Best Forex Broker

Steps for Selecting the Best Forex Broker

Becoming a trader in the forex market is a process that calls for prolonged learning and proper research. After that, one more simple step needs to be taken for accessing the forex market which is making a trading account with a forex broker. The process of opening a live trading account is pretty easy and fast with most brokers. You have to complete the KYC verification with valid ID proofs and can start trading once you fund your account. But since there are a lot of old and new forex brokers operating in the forex market, it is normal to feel confused about selecting the right broker for yourself. Hence, here’s a guide for you with some steps that you can follow for simplifying the selection process.

Importance of Choosing the Right Forex Broker

When you are choosing a forex broker, you are also choosing someone to trust with your hard earned money. Let’s take an example to explain this. Most of us won’t feel at ease if we had to rely on a stranger to keep safe custody of our funds. We will always choose a reputable bank for handling our financial transactions. Similarly, you need to make sure that the broker you choose for trading forex is reliable and safe. They will be in charge of giving you a platform and executing your orders at best prices.

A forex broker plays a big role in shaping the trading experience of their clients in terms of platform functionality, trading cost and more. Choosing the right broker will make the process of trading hassle-free and stress-free for you. Whereas, choosing the wrong one will have a negative impact on your trading and trading results as well. Each trader is different and may look for different things while selecting a broker. But the steps below can be used as a general guide or outline to list down your own requirements and pick the most ideal broker for forex trading. 

Step 1: Check for Regulations/licence

Those who want to play safe must always go for regulated brokers. Regulations are not the only factor to consider for selecting a broker but still you can check this to stay on the safer side.

Step 2: Check Their Trading Conditions

This is a step one cannot simply skip while selecting a broker to open a live trading account. The trading conditions offered by a broker comprises spreads, commission and leverage. Going for tight spreads & low commission charges would be ideal for all traders. Also make sure that they are transparent when it comes to pricing and services offered.

Step 3: Check Their Deposit and Withdrawal Conditions

This is another important step since many traders tend to face issues regarding deposits or withdrawal of funds. You can consider it a red flag if a broker demands a huge amount for initial deposit or places restrictions on withdrawal of funds. They are regulated by CySEC & ASIC as well. You should also check for the deposit methods and withdrawal options available with the broker to choose the one that’s most convenient for you.

Step 4: Check Their Platform Functionality and Customer Support

A trading platform that does not function fast enough will lead to huge problems when you engage in live trading. So make sure the platform is smooth and bug free before opening a live account with the broker. You can do this by opening a free demo account with the broker. And another important thing to consider would be the customer support offered by the broker. You need someone to clarify your doubts and assist you throughout whether you are a newbie or experienced trader. So, make sure the broker has a responsive customer support team who will answer your queries in no time. 

You can easily filter your broker options by following the steps that are stated above.

Now, let’s have a look at the top forex brokers who have stood up to the expectations of clients based on the above specifications.

IC Markets Review

They are a popular ECN broker, trusted by many forex traders on a global level. They are regulated by CySEC & ASIC as well.   The minimum deposit requirement is $200 for opening a live account and the spreads go as low as 0.0 pips. And the commission charged on trades is $3.50 per lot payable per side. They offer cTrader, MT4 and MT5 as trading platforms along with a mobile app. 

  • Live chat customer support
  • VPS services

AAAFx Review

They are a well-known low-cost forex broker regulated by HCMC and FSCA. They would be ideal for someone who wants to open an account with low initial deposit. You can go live by funding your account with just $10 and then they provide raw spreads starting from 0.0 pips on their regular ECN account. And the commission charges are $0.99/100k per side.They provide 3 different trading platforms MT4, MT5 and ActTrader.

  • Live chat customer support
  • VPS services

Fxview Review

They are a reputed broker regulated by CySEC, and offer tight spreads starting from 0.0 pips on their regular ECN accounts. The minimum deposit is $50 for global users and $200 for EU users. The commission charged is $1/100k per side and the trading platforms provided by them are MT4, MT5 and ActTrader. They also provide a mobile app version called fxview droid for on the go trading.

  • Live chat customer support
  • VPS services

Some traders may want to have accounts with multiple brokers based on their trading style. And some may just want to stick with 1 or 2 brokers. In any case, you can use the 4 steps explained above to narrow down the choices before making the final decision.