Have you ever wondered which elements set quality and reliable Forex brokers apart from those that are not? Is there such a classification at all, and what is the key to knowing about it? First of all, let’s give a short explanation to everyone who still can’t clearly define what a Forex broker is.
An ideal and quality forex broker is a financial firm or service that allows traders access to a platform for buying and selling currency pairs. The truth is there is a wide array of brokerage choices available for you to choose from. However, knowing which one is relevant and quality is an art these days.
Therefore, we’ve provided you with the five most crucial elements that distinguish good brokers from those who aren’t. Let’s get started with element number one.
#1 Regulatory agencies
What is essential to understand is that in various Forex brokers online, you must make sure that regulatory agencies regulate your preferred broker. For example, two crucial agencies are meant for regulating brokerage firms. These are:
- National Futures Association (NFA)
- Commodity Futures Trading Commission (CFTC)
In Europe, it all depends on the country you’re living in. The list can be pretty extensive.
#2 Customer service
As a severe Forex trader who has developed his Forex trading strategy and aims high to become a successful and wealthy trader one day, his chosen broker must provide 24 hours available customer service.
We all probably know by now that this industry is well-known for many great opportunities regarding making huge profits. However, there will be dark times and crises that will require additional help from a live person.
#3 Broker tools
Another critical element of a successful Forex broker is its broker tools. In order to protect themselves against the high risk of forex trading and market volatility, numerous investors are looking for specific broker tools.
In most cases, they are looking for demo accounts and order types. A demo account is a mandatory tool for every beginner in Forex trading. It helps each individual develop their trading skills and avoid losing a lot of money while trading. Order types are there to minimize your losses once currency pairs’ price movements are not as you wanted them to be.
#4 Reputation
A good reputation of a Forex broker is something you need to consider while you’re choosing your preferred broker for you. Thanks to the internet and the online community, today, it is elementary to notice all the advantages and disadvantages of one broker simply by looking at its reviews and comments of its customers.
Read Forex forums where the current and past traders have commented, compare different brokers, and see if respected industry voices have awarded them or not.
#5 Educational material
Never underestimate the power of online education and improving your knowledge and skills of Forex trading. A quality Forex broker will always have reliable educational materials to help you become a very successful and wealthy Forex trader one day.
The key is persistence and improving your skills and knowledge. Keep up the excellent work, and never give up! Good luck!
Disclaimer: This content does not necessarily represent the views of IWB.