Forex brokers are financial services providers that act as a bridge between you and the forex market. For you to access the 24-hour currency exchange market and trade currency pairs, you need the services of a financial broker.
Having said that, brokers are all not the same. They offer different features on their platforms and as an upcoming trader, you must be able to pick the best for your trading needs. For instance, there are brokers like LiteFinance Global LLC broker that offer a variety of trading instruments and are reputable.
To help you get the best broker in the market, here are some of the top guiding factors to look out for.
Payment and Withdrawal Methods
Forex brokers, especially those with a global footprint tend to offer several account funding methods. However, it is not always given that a broker will accept your mode of payment unless they’ve listed it as one of the acceptable channels.
An ideal broker should provide you with a wide range of payment and withdrawal methods to suit your unique circumstances. Here are some of the funding and payout channels to expect.
- Bank Cards- If you have a Visa or Mastercard branded credit or debit card, you should be able to deposit funds into your trading account via card. Brokers process these payments securely and fast through global merchant acquirers.
- Bank Wire Transfers- If a broker has a local representative in your region, you may be able to seamlessly deposit and withdraw funds in your local currency. Alternatively, you could cost-effectively transfer funds through bank wire transfer from and to any country around the world.
- Mobile Money Transfer– There are some forex brokers that are open to receiving deposits via mobile money payments. Customers can also withdraw straight into their mobile money wallets from wherever they are.
- Cryptocurrencies– With the growing acceptability of digital assets, some brokers readily accept deposits and withdrawals via cryptocurrencies such as Bitcoin, Litecoin, Ethereum and many others.
In addition to the above methods, you may also check out forex brokers that offer PayPal, Payoneer, and Skrill as possible funding and withdrawal methods.
Each of the payment and payout methods are subject to a commission and minimum balance. Please check those out as well to ensure you are covered.
The Trading Accounts They Offer
Trading needs differ from one trader or investor to another. If you are a beginner trader, you may want to follow the trading strategies of experienced traders in the market. In this case, one of the account features to look out for is social trading.
The other consideration is account leverage. You may find accounts under the same trader that have varying leverages. One account may have a leverage of 1:1000 which means you can hold a position size of up to $10,000 if you have $10 in your trading account. Leverage enhances your potential for profits.
Also, check on the minimum deposit the broker requires. You may come across accounts with a minimum deposit of $50. In a bid to win your business, some forex brokers may lower their minimum deposit to just $10. Depending on how much you are willing to invest or trade, look for a reputable broker within your range.
If you are new to forex trading, a demo trading account will help you. It is a funded account that will help you learn about forex trading without spending real money.
The Asset Classes Available
Forex brokers have different asset classes available that enable you to build your portfolio and increase your chances of profiting. On the currency asset class, check the forex major currency pairs the broker has such as AUD-USD, EUR-USD, and GBP-USD. Also, check on their major cross rates and the minor currency cross pairs.
Because you may want to combine currency trading with other assets in future, confirm the other available asset classes. Typically, expect your broker to have indices, cryptocurrencies, and commodities as part of the asset classes.
The broker’s trading platform is your gateway to the markets. The best forex trading platforms in the market are MetaTrader4 and MetaTrader5. Though MetaTrader5 is a more modern trading platform, it is still suitable for beginners and you can access both platforms on desktops and mobile devices.
Ideally, the platforms should be well configured to enable you to find your way around easily. For instance, on the interface, you should be able to quickly open and close positions. The platform should also allow you to conduct technical and fundamental asset analysis, build a trading strategy, set trading alerts, and customize your interface.
Often ignored but crucially important, the customer service a broker offers can be a make or break for you. Access to live customer support at least 5 days a week on a 24-hour cycle is a game changer.
Try calling or chatting with the customer support of your prospective forex brokers and analyse their waiting times. Whether you are a beginner or an experienced trader, quick response times can mean the difference between profit and loss in a position.
Getting the right forex broker will ensure that you get the support you need to quickly pivot to profitable forex trading. Whether you are an amateur or professional trader, the services your broker offers can either disadvantage your trades or put you up for a successful trading experience. The pointers above will help you get a broker you can comfortably work with.