If you are ready to start trading in forex markets, you need to find yourself a trusted broker. A trusted broker will help to reach your trading goals by enabling you to have access to a platform that enables you to buy and sell currency with ease. The foreign exchange market is the world’s largest liquid market and a forex broker can only pay a small part of the large forex marker. This is because the market does not have a central market place so you have to be very careful about the grocer you choose to conduct your trading activities.
The first most important thing to do if you are aspiring to trade in forex markets is learn the educational process so that you fully understand what you are getting into and what to expect. The next step is finding the best forex broker and since there is a large number of them in Australia, finding the best may be a daunting task. We have helped with the steps to follow in order to ensure that you find the best forex broker to take care of all your trading interests.
3 Steps to finding the best forex broker
It is for your benefit to find the right forex broker because your success in trading in the wide currency markets internationally depends on it. Every investor has his or her own special needs and understanding the style you want to take in investing will help to determine the kind of forex broker you want to go with. The following guidelines will help to note the best features to look for and the advantages of choosing certain kind of broker over another one. Some of the things that make brokers different are the trading platforms, research tools they use, discounted commissions, account requirements and customer care support among a few other factors.
Check for the brokers regulations
When you are carrying out your research for the possible forex brokers to go with, check if they are compliant with the right regulatory bodies. Brokers in Australia must be regulatory compliant with ASIC (Australian Securities & Investments Commission) and hold a valid AFSL (Australian Financial Services Licence). Being regulated means that the brokers follow the set rules aimed at protecting you from fraud, manipulation and other practises that may harm your investments. Regulation also means the broker is financially sound, open and competitive.
When you are checking for the right broker, do not let the number of prizes and awards take you in because they do not necessarily mean the broker is legit. Dig deeper because the safety of your money depends on what you find out and you need a broker that ensures that your investment is safe at all times even when he goes bankrupt due to unforeseen factors. Go for a good reputation and sound financial backing by checking out the broker’s trade assets, commissions and spreads and their trade execution reliability.
Check the brokers trading platform
A trading platform needs to be easy to use and well equipped with modern and diverse trading tools. It is where you will carry out all your trading so you need to use it with ease. Majority of the most reliable and trusted forex brokers will offer you a demo account on how to use the trading platforms. With a demo account, you can test all the features of the trading platform on offer, which include the interface, order entry points, trading alerts, strategy building and trading options.
Besides a demo account, also check if the broker offers any educational tutorials and access to resources that can help you to trade better. The tutorials could be via videos, magazines you can get online, guides and manuals or trader forums.
Check the customer care services
It is very important that you are able to reach your broker at any time of the day or night because forex trading is a 24-hour market place. Before you engage the broker, try out the customer service by giving them an impromptu call. Analyse the time they take to respond to your call and what important information they give you in regards to the questions asked. In addition, it is important to note the kind of professionalism the broker exudes over the phone.
Do not put your funds into the hands of someone or into a brokerage firm that you are not sure of whether they can deliver or not. The above guidelines are among many other things to look for when you are choosing your forex account Australia broker. Do enough research because it will make a difference between making it and losing your investment.