Venturing into the forex market is risky, which is probably why investors are attracted to it in the first place. Investors love an environment whereby as much as they are exposed to risk, the returns are also attractive. Every trader joining the forex market needs to have a broker. They act as the link between the trader and the exchange. The brokers trade on behalf of the investors.
To be successful in FX you need to ensure that you have the right broker before you even get started. The Forex market is very competitive. For that reason, it would only be natural to have many players in the market. Being spoilt of choices may appear to be a good thing until it becomes challenging to make a choice, primarily based on merit.
Successful traders have one thing in common: they trade with reliable brokers.
What makes a broker reliable?
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Regulation
Different jurisdictions have regulatory bodies that oversee the activities of the traders. They are there for the security of the traders. You cannot merely trust the word of a brokerage firm that it is legit. While it may be impossible to go physically to the broker, there is only one way to confirm that: finding out if there is any regulatory agency that recognizes the broker. Before you think of entrusting your money with a broker, ensure that there is a relevant regulatory agency that is overseeing its activities.
You can get that information from the broker’s website and confirming that the license number actually exists. Any broker with a valid license and ID would be proud of it and pleased to share it on their website.
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Trading platform
As aforementioned, all the transactions in FX are done on a trading platform. What that tells you is that the trading platform that a broker uses is also worth looking at. What should you be looking at? One is stability, and two, user-friendliness. Check what the platform the broker uses offers the traders. Features such as news feed and charting tools should be an added advantage. They will give you all the information you need to trade profitably. A good example is the MACD indicator. It is a tool used in technical analysis that varies within a band over time. Such tools will help you identify the oversold and overbought conditions. They are there to help you make more informed trading decisions.
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Customer support
A forex broker that has no customer service cannot be trusted. Before you learn your way around the platform, you are likely to get stuck every once in a while. What happens in such an event? You do not want a few hitches to get in the way of your trading. That is why support needs to be available at all times.
You should, therefore, consider trading with a broker that will offer the necessary support when needed. Competence when it comes to dealing with technical issues speaks volumes on what to expect when it comes to execution.
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Deposits and withdrawals
Take some time and visit several forex broker websites. There is something that you will notice: most of the complaints are based on issues with making deposits and withdrawals. A legit broker has no reason whatsoever of holding your funds. Withdrawal processes should be smooth and speedy. Stay away from brokers that it hard for the traders to withdraw the profits they have earned.
It is also important that different brokers have varying deposit and withdrawal options. Some of the options include Skrill, Paypal, Neteller and credit and debit cards to mention a few. You are better off picking one that is most convenient for you.
With that checklist, you should be able to find a reliable broker that will make your participation in the FX market smooth. Some brokers also avail account managers to the new traders to help them find their way around their trading platforms and handle various issues: take advantage of such incentives.