How to choose your forex broker?
There are few key factors that everyone should consider before registering for a trading account with any forex broker.
- Regulation: One of the most important factor. There are many new brokers that are not regulated and may put your money into risk. Your money is not safe with unregulated brokers.
- Trading environment: Honest brokers would never want to manipulate trading/execution environment. Therefore, you need to check whether the broker is honest with trading executions.
a) Spreads: Spreads should be tight, many brokers these days offer ultra low or zero spreads trading environment.
b) Slippage: While trying to close in profit, did you ever discover ending up in loss or less profit? Similarly, while closing in a loss, you ended up in much bigger loss? That is because some server side plugins were applied to your trades; and this is called Slippage. This way brokers make more money and try to maximize their profit unfairly.
c) Margin call/Stop out level: Check out the margin call and stop out levels of the broker as they will be crucial for you when you are at loss.
- Deposit/withdrawal methods: Make sure you find your preferred payment options available. These days many brokers offer zero fees on deposits and withdrawals, this is another option worth looking.
- Check Reviews: Check reviews from existing traders before you decide your mind about the broker. Here at ForexCake, we encourage traders to leave their experiences with the brokers so that others can be benefited from it.