Forex Brokers: Which Broker Is Right or You?
There is no principal market or clearinghouse for foreign exchange trading, also known as Forex (FX). Should you wish to trade in foreign exchange you will need the services of a Forex broker. The brokers which provide access to the foreign exchange market should always be regulated. Examples of good regulators are Cysec in Cyprus and the FCA in the UK. Regulated Forex brokers agree to abide by the association’s trading rules and not to take part in fraudulent trading practices. Deciding which company suits you best can be difficult. Before deciding on your broker, study the firm’s financial profile using the regulatory bodies’ websites.
There are a multitude of Forex brokers who advertise their services. It is advisable to do some online research to compare broker ratings, reviews, features, and fees before committing. Always make sure that the company is regulated. It is wise to check that a Forex broker clearly advertises registration on their website. Verifying whether a broker is duly registered and authorized to provide financial services, is vital. This information is publicly available on the regulatory bodies’ websites. Entering the company name or reference number should bring up the company’s profile on the regulatory websites.
Choosing a Trading Platform
It is important to choose your trading platform very carefully to find the one that best suits your needs. Look online for regulated, trusted, and safe brokerages registered with Tier 1 regulatory authorities. Read online reviews of the services offered by each brokerage. Websites should always be clearly navigatable and should offer clear information on the services offered as well as the associated cost.
A brokerage will offer a well-designed trading program as well as a mobile app. These usually include a variety of online trading features such as advanced order management capabilities (including semi-automated trading features), charting features, news articles/notifications, market research, and trading demos to support clients and should offer 24-hour access to advice via telephone email or live chat.
Squared Financial offers the MetaTrader 4 for free and one can get a hold of it, by clicking on this link.
Trading Fees with your Forex Brokers
Trading fees are an important factor in any financial investment and Forex/CFD trading is no exception. A careful and considered online search into trading fees is crucial for any trader looking to maximise profit. Take a careful look at costs compared to services offered before deciding on a broker. Good customer service and technical support are equally as important as competitive prices.
Forex broker’s charges for transactions made will affect any net trading gains. For example, a position trader may make one transaction in 24 hours but a scalper, who’s gain is from many small transactions, could make up to one hundred transactions in 24 hours and will require a faster but lower transaction cost than the position trader.
Withdrawal and Deposit
A broker’s function is to ensure secure, fast, and convenient trading transactions for its clients. A good Forex broker will have an efficient deposit and withdrawal system making for smooth and easy trading experiences for clients.
Withdrawal conditions, timeframes, and methods will be outlined on your broker’s website. Brokers offer many different options for deposit and withdrawal including credit cards, international bank transfer (SWIFT), Union Pay, and Ali Pay. Some brokerages offer the possibility of transferring funds to and from another broker. All of the Squared Financial deposit and withdrawal options can be found here.
Order Execution Speed with your Forex Brokers
The order speed is an important part of Forex trading. A higher speed transaction will result in less possibility of order slippage. Order slippage occurs when orders are delayed and exchanged at a different price than requested. This can happen due to market change. The execution speed can also result in the rejection or re-quote of an order due to delays. Although this can happen it should be a rare occurrence.
Forex brokers publish their execution speeds, but actual speeds can vary due to outside influences such as your own internet connection. However, there are sites that compare brokers’ own execution speeds and others which can tell you the exact speed of your own real-time connection. Good execution speed is necessary since it can mean the loss or success of a transaction with just a few pips difference in cost.
The broker you choose should be the one that provides the best services based on your requirements for the lowest price.
When you first open an account with a Forex broker, brokerages provide comprehensive information outlining how to conduct them and which support services they offer to their traders. This information should be clearly available on a company’s website. Look at comparison sites that have the services set out clearly and are easily comparable. Broker’s services review sites are also available which rank broker’s client support services against particular stated standards.
Some firms offer comprehensive services such as 24-hour live chat, education, news, and trading advice in many different languages, alongside account and customer trading tools; however, these will sometimes come with a charge. Other brokers might offer lower charges but offer fewer services options. This might suit a more experienced trader who prefers lower transaction costs and greater profit.
Traders need to know that they are able to make contact with their broker, to solve any issues.
Taking all the considerations above into account, you cannot go wrong in opening up a trade account with Squared Financial – it only takes a minute and you can sign up for free here.