Choosing the right Forex broker is a time-consuming procedure. You’d be faced with a lot of questions that need an answer to determine the correct choice of the best Forex brokers 2018 for your trade. Among the issues that need answers are: which Forex broker is the ideal choice for you and why this broker would be your preferred choice. You may also want to know what features are offered by this Forex broker and if your funds would be safe in the hands of the Forex broker. This article provides you with the necessary information on how to choose a Forex broker and make successful Forex trading reality for you in 2018.
As a novice Forex trader, there is a lot of useful information you need to guide you on how to choose the best Forex broker. Some of these are the features that a reputable Forex broker needs to have to make trading Forex a reality for you possible when you sign up with this broker. Examples of these brokers include the following:
- The type of features that a good Forex broker needs to have.
- The bonuses and additional offers that a broker may be offering to help you make the right choice when looking for how to choose a good broker
- How to decide among the many brokers who operate on the web the best suitable Forex broker for your trade.
Other things you need to consider when you are choosing a good Forex broker to include the following:
How regulated and safe it is to trade with the broker
One of the most significant features you need to consider while choosing a good Forex broker is if the broker is regulated. If you find out that the broker is regulated; you also need to check the strength of the regulatory body and if the company is complying with the required regulation.
Is the broker complying with the necessary regulation?
The dealings of any reputable broker must always be under the watch of a reputable regulatory agency to ensure the integrity of the operation of the brokerage firm is maintained and protected. The brokerage company must be highly trustworthy and not engage in any form of abusive, fraudulent and manipulative activities which would endanger the success of their traders. For instance, in the US all reputable and trustworthy brokers must be registered with the US Commodity Futures Trading Commission (CFTC) either as a merchant or a retail Forex dealer. Such broker must as well be registered with the NFA (National Futures Association). You will be able to discover if a broker is regulated by checking the about us section of the company’s website.
Other countries of the world have similar regulations to govern the operation of things in the Forex market.
The Forex trader needs to check the regulatory body of their brokers and their rate of compliance with such regulations depending on where the brokers are operating from and their office location.
How safe are the trader’s funds?
Forex regulation comes with a group of rules that regulated brokers must comply with, and these rules are to ensure the investor’s funds with these brokers remain safe all the time. This is the main reason why it is essential for you to choose a regulated broker. All regulated brokers must obey the “Net Capital Rule” which specifies the smallest amount of money that the broker must liquidate. This helps to protect traders and investors if the broker is forced by any circumstance to file for bankruptcy or shut down.
Besides, regulated brokers also have the mandate to keep traders and investors funds in a separate account to ensure that they are only used for the trader’s investment and not for any other purpose. Some countries like the UK provide government-supported deposit insurance for all the regulated brokers to make it easy for traders to recover a section or the complete amount of fund they invested with the broker if the broker misuses their funds.