Have you become interested in currency trading? Do you want to get started but want the assistance of a broker? Using a broker will give you that much-needed advice and tips on how to go about currency trading, which can then garner you better results. But how do you pick a broker? There is no shortage of them, which can make it a bit overwhelming. This is why we’ve gone ahead and put together some basic tips on how to choose the best broker for you when it comes to currency trading.
Ask Yourself What Kind of Trader You Are
While you may think the first step is to investigate the various brokers available, that’s actually not true. You want to begin by asking yourself what kind of trader you plan on being. What are your goals, what will your investments be, how involved do you want to get, and how serious do you plan on being about currency trading. Your answers will help to determine what kind of broker is best for you. This isn’t a one-size fits-all answer.
Ensure the Broker is Regulated
It’s wise to find a broker is also regulatedby a well known authority.Examples of these include CySEC in the EU and ASIC in Australia. Anytime a firm is unregulated or does not hold a licence from a reputable jurisdiction, it should act as a red flag.
Ask About How the Broker is Paid
Then there is the question of how your broker is paid for their services. In many cases, the system used is a bid-ask spread of a specific currency pair. As well, there are some brokers who will then charge fees of their own. That could be a monthly fee, a per transaction fee, or even fees for using specific resources and tools.
All of this should be discussed in full in advance of any trading so that you’re aware of what you’re getting into. The broker needs to be able to clearly explain how they make money.
Check Out Online Reviews
Once you narrow down the list of potential brokers, it’s a good idea to check their reviews online. Ideally, you want to look for reviews from everyday people just like yourself, as well as industry experts that can shed a bit more light on the broker. Another sign of a reputable broker is a high Trustpilot score, an example of which is easyMarkets.
Safety and Privacy Should Also be Top Concerns
Then there is the safety and privacy of your personal information and funds. You need to know that both are in good hands with the broker you choose. Experts suggest you discuss the broker’s withdrawal and funding systems in advance and ask about such things as safety and security.
How About the Customer Service?
If you’re new to currency trading, then you’re bound to have questions, so customer service will also be of importance. Is the broker easy to reach, how quickly do they get back to you, and can they answer your questions?
All of these tips will help you to choose a broker that you feel comfortable and confident with.