If there is one common concern that just about everyone shares, it has got to be money. From bartenders to CEOs, finances are always something to be worried about, because you don’t really know what tomorrow has in store. This is why people take as many precautions as they can.
Some open up savings accounts, and others try investing in the different markets available to make a little extra cash on the side. While real estate and stocks are great options, the forex market is probably your best option. It trades in trillions every year, and if you know what you’re doing, you can make a lot of money.
But to do that, you need to find a reliable forex broker. Here’s how you can do that.
Look For The Credentials
The first thing you need to be aware of when looking for a forex broker is their credentials. For starters, do they comply with regulations and laws in the country? Are they registered with the relevant trading entities like the National Futures Association (NFA) and the U.S. Commodity Futures Trading Commission (CFTC)?
You have to ask questions like these, so you can be confident that you are dealing with a reliable broker and your money would be safe with them. Try to look past appearances and the glamour of the broker’s website, and look for such credentials and accreditations because they make the difference between reliable and shady brokers.
Learn About Security Measures
After accreditation comes security, and it must be flawless. Thanks to the rapid evolution of technology and its impact on a market as big as forex, you will most likely be doing most of your trades online. So, you have to carefully consider security while choosing a trader platform to trade. You are going to be investing thousands with these guys, and you have to be able to trust them to do that.
The great thing about dealing with a market as big as forex is the fact that there are plenty of ways to find out if a broker is credible and using the latest technology protocols to keep their traders’ data secured. The ones we mentioned earlier like the NFA and CFTC in the US can help you figure out how secure the broker is, and you have similar ones in the UK like the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Each country or region has similar bodies that you can consult to inquire about the security levels of a forex broker.
Compare Pair Availability
In case you didn’t know it already, the forex market deals in currency pairs. So, you can choose certain ones like EUR/USD to trade in, and there plenty of currency pairs available as you would imagine. One of the things you need to look for in a forex broker is the availability of those pairs. On average, an international forex trader would give you 50 or 60 currency pairs to trade in.
While this is the average, you can find reliable brokers offering less than that. But you shouldn’t deal with a broker that offers just two pairs, for example, because they wouldn’t really help your goals in this market and they might not be reliable.
Examine The Technology
One of the most important angles that you have to consider while choosing forex brokers is the kind of technology they’re using. As we mentioned earlier, trading in forex currency is now easier than ever, courtesy of the internet and mobile technology. This is the kind of option that you have to look for in a broker. The last thing you need is a forex broker whose platform can only be accessed via a desktop. You want them to have mobile options easily accessible so you could make trades any time of day without wasting any time.
Last but not least, you need to take costs into consideration. How much are the transaction costs with this forex broker? There isn’t really a certain number that you should look for but exercise caution here. Ask about the market average, and look for something within that range. A forex broker charging too much money isn’t really reliable, and believe it or not, neither is one who charges too little – because there’s probably a reason for that.
You need to take your time with this step. The forex market is the biggest in the world, and you will be overwhelmed with options to choose from. So, consider each broker in terms of the points mentioned above. Then, once you’ve narrowed the list down, start comparing features and benefits. A lot of brokers offer certain benefits to lure traders, so that might help, too.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.