The FX market is widely popular and is currently one of the most commonly used financial markets in the world, with around 4 trillion US dollars being traded every single day. The global popularity of FX revolves around the fact that anybody can trade with it. However, in order to begin trading, foreign exchange brokers are necessary so traders can open accounts.
With FX trading increasing rapidly due to its vast accessibility, everyday people have started to search far and wide for reputable and trustworthy FX brokers. If you’re about to begin your exciting forex trading journey, it’s important you choose your FX broker wisely. Take time to compare FX brokers and look for these important qualities.
Regulations & Security
This is the absolute first thing you should identify in an FX broker before you make the decision to trade with them. In Australia, an FX broker must be registered with an Australian Financial Services License (AFSL) and they should also be regulated with the Australian Securities and Investments Commission (ASIC). Look for these regulations to ensure the credibility of your chosen FX broker, as this is the best way to identify that they’re a trusted broker.
Don’t hesitate to ask for proof of these regulations and check that your FX broker is registered with at least one regulatory body. Looking for this information will ensure that you’re protected from the likes of bankruptcy and huge losses. It will also mean that your FX broker cares about their reputation enough to provide proof of credibility to their clients.
Professionalism & Reputability
To determine if a broker is professional and reputable, it’s imperative that you look at their website and online presence. In order to choose a good FX broker, you need to think like a fussy FX trader. What does their website offer you? Is it professional? Is it going to be easy to use and navigate? Most importantly, is it going to crash during important trading times?
Reputation is everything in the FX industry, and every FX broker is in competition. Choose a broker that’s taken the time to design and develop an impressive, aesthetically pleasing and easy to use website. A business’ website provides you with the best indication of the level of professionalism you’ll be dealing with.
Impressive Services & Tools
There are a few different qualities that can set FX broker companies apart from one another, making comparing them much easier. At the very least, you need to ensure that your FX broker provides you with a practise demo account so that you can get a feel for the trading game before jumping into the real market. It’s also vital that your FX broker provides you with knowledgeable and useful customer service when you need it. This includes quick response times and effective communication.
On top of this, you should look for:
- Reasonable leverages and competitive spreads – keep in mind that if something sounds too good to be true, it usually is
- A good trading platform like Meta Trader 4
- Loss protection features and useful information