Few things make the Forex market different from all other markets. Some of these are: round the clock trading, rapid growth and most significantly, the vast daily trade volume. There is roughly trade volume of four trillion dollars every day in the Forex market. The massive Forex trade volume and natural accessibility results to the rapid proliferation of Forex brokers. Having an enormous choice of brokers is excellent. On the other hand, the extensive list makes it a daunting task for a novice trader to choose a trusted Forex broker a daunting task. However, the broker you select will determine your future in the Forex market. It is also what will show whether or not you will succeed. To help you choose a trusted broker, we have provided in this article, eight secrets of finding the trusted broker on the Forex market.
Top 8 secrets of finding the Trusted Broker on the Forex Market
1: Is the trusted broker regulated?
The first secret to finding a trusted broker is to check if the company is regulated and if yes; how. All trusted brokers in the US operate under the regulation of The National Futures Association (NFA). They also register as Futures Commission Merchant (FCM) and must also operate under the Commodity Futures Trading Commission (CFTC). You can check how reputable a Forex broker is by visiting the NFA official website to check the standing of the broker. You will also find information regarding any previous disciplinary action against the broker.
- Does the trusted broker have a professional website?
A trusted broker must have a professionally looking website. The website creates the first good impression. If the site is unprofessional, it is unlikely that it is a trusted broker. A few more things you need to find out is if the website has a user-friendly interface and if it loads quickly and how often does the site crash. The load speed is essential if you are going to invest your money in the company.
- How competitive is the trusted broker’s Spread?
It is highly essential to figure out the brokers spread before you sign up with the company. The spread is critical given that the Forex market trades currencies in pairs. How the selling price varies from the purchase price is the spread. A trusted broker must have a trading range less than five pips for crucial currency pairs which include the following: USD/JPY, EUR/USD, USD/CHF, USD/CAD, GBP/USD and AUD/USD.
- Does the company have a good customer Support?
A trusted Forex broker must have inimitable customer support to address the platform user’s frustrations. Customer support is essential because poor customer support can make traders to lose their invested funds. In addition to the frustration caused by lack of customer support, you can lose your funds especially when the broker delays to respond to your request to open or close a trade. Make sure you check how responsive the broker is by emailing and using their online chat before you register.
- What is the broker’s response time?
A trusted broker in addition to offering good customer support must be able to respond to your open and close order instantly. To ensure that the broker has a good response time, try to open a demo account and check it out before you commit your real money.
- What Leverage does the broker offer?
For any broker to be a trusted broker, it must commonly have S2 Leverage. Nonetheless, trading with high leverage is as risky as the benefits. The majorities of good brokers offer leverage ratios that begin from 100:1 to as lofty as 400:1. Higher leverages present a higher risk to the broker than lower holds.
- What is stop Loss safety features offered by the broker?
The stop loss safety feature of a broker is essential to ensure that your stop loss is below a specific sum. The majorities of brokers provide the stop-loss feature but to be on the safer side; it is better to verify.
- How competitive and user-friendly is the brokers trading platform?
The platforms competitiveness and interaction with the user is among the most significant secrets that tell you how trusted a broker is or not. If the brokers trading platform does not come with an easy to use interface, it will be hard for you to succeed with the broker as a Forex trader. The user’s interface should be able to help you to attain your goals without requiring you to go through complicated steps.
5 Reasons to Choose Trusted Broker on the Forex Market
These are five reasons you need to choose trusted broker while trading on the Forex market:
- They provide real-time trading quotes and advice better than that of the rest brokers in the market.
- They transfer your trade orders directly to companies that provide liquidity
- They help you to have easy access to data from various trading platforms.
- Trusted brokers offer adequate leverage.
- They give the users trading resources and training including financial and political news that could affect the price of currency pairs.
Conclusion: Your Forex Trading success primarily depends on your ability to find a trusted broker
Many factors determine whether or not you succeed as a trader in the Forex market. However, the most significant one among them is finding a trusted broker to commit your fund. Following the above secrets will help you discover and open account with a trusted broker.