With there being many forex brokers to choose from, you’re often left with questions of which is the best option? Even if you have a checklist of what makes a good forex broker, there are still qualities and characteristics to watch for that not every broker has.
There are quite a few forex brokers on the market that sport multiple red flags and do not have their client’s best interest at heart, or do not meet the proper regulations for forex trading, Hugosway being an example. However, that doesn’t mean the perfect forex broker isn’t out there.
We created a list of five qualities and characteristics to look for that make a good forex broker.
Follow All Licensing and Regulations
Likely the top quality of a good forex broker is that the company follows all licensing and forex trading regulations. Unregulated brokers can get themselves, you and your money into shady situations, all of which you do not need.
Ask yourself this – are you comfortable with your money being handled with an unregulated broker?
Offers a Demo Account
Another excellent quality of a good forex broker is that the company offers a demo or trial period. It’s a standard business practice to provide clients with a trial period of a few weeks or one month or give them access to a demo account with fake money. This allows the client to become familiar with the platform and make sure it’s a good match for them.
A good, regulated forex broker should have no problem offering you a trial period or demo account at no risk to you.
Choice of Account
Since you’re the client and the broker makes a bit of money off you, a good trait of a forex broker is allowing you to choose the type of account best suited for your needs. With forex trading being popular, there are different types of accounts available. Your broker should offer access to them.
One type of account is an ECN forex broker that acts as a bridge between forex traders and executing trader requests and orders. You can take a look at the top ECN brokers of 2020 to see what they all offer.
Adequate Customer Service
Having good customer service is a huge asset for a forex broker for a few reasons. To start, since someone can forex trade 24-hours a day, it’s important to have access to customer service 24-hours a day. Especially for a new trader or someone testing out a new broker, anytime customer service access is a huge perk.
Adequate customer service also comes in the form of real-life customer service technicians. When you’re calling with a question, you want to speak to a live person right away, not having to push numbers in hopes of getting the right answer.
Ease of Deposits and Withdrawals
Another essential quality, and for some forex traders, the most important quality, is the ease of deposits and withdrawals. That is your money in an account through the broker, which means you should be able to access it at any time without any issues.
Before choosing a forex broker, take time researching what it offers and the reviews about it. Past experiences from other traders will help give an image of what the broker is like.