One of the first things that you will have to do before you can establish yourself as a forex trader is to find yourself a broker. On the surface, this can seem like a rather simple task. After all, there are numerous brokers to select from and they typically have quick registration processes as well. Unfortunately, it isn’t quite as easy as that. While forex brokers may be a dime a dozen, you need to be cautious about which ones you select. If you wish to avoid poor service or risky activities, follow these tips when looking for a broker:
Authenticity is Key
Prior to doing anything else, you need to be certain that a broker is regulated by an appropriate agency such as the ASIC. This is important for several reasons. First, regulated brokers are expected to maintain a certain standard as this is something that regulatory agencies check for. As a result, they are more likely to adhere to the rules and treat you fairly as well. What’s more, regulated brokers also offer you peace of mind. You know that should anything be amiss, you can easily report them to the proper authorities. So, if you find a regulated broker, you shouldn’t hesitate to sign up today.
Compare the Services
There are some greedy brokers that try to fleece you through spreads, commissions, leverage, or even initial deposits. Thus, it is important to not take brokers at their word when they claim to be offering you the best possible rates. Instead, you need to do this research yourself. Look at the top brokers and determine what their offers look like. However, it isn’t just about selecting the cheapest broker. You need to make certain that you are getting the best value for money. This is what you should be basing your final decision on.
Look for Protection
You don’t need to be told that forex trading is a risky business. Therefore, you should look for brokers that provide you with the opportunity to protect yourself. This can be done in different ways. For instance, determine how a particular broker manages client funds. To ensure that your money will be safe regardless of how the broker fares, check that they use segregated funds. At the same time, see if they offer special features such as negative balance protection. This is where you will not be allowed to take on losses greater than your account balance. Such a feature can prevent you from getting into debt.
Consider the Level of Assistance
Finally, consider the level of assistance provided by a particular broker. This is especially important if you are a novice broker and will need more frequent help. You should be able to communicate with the broker in a variety of ways and get assistance whenever you need it. In general, though, look for a broker that has excellent customer service and that is known for dealing with customer complaints quickly and efficiently.
If you are looking for a forex broker, then these are the rules to abide by. Follow them and you will find it surprisingly simple to find a broker that is perfectly suited to your needs.