The number of “bogus” investments around foreign exchange trading makes people have to be more careful in making this type of investment. Because there are many forex brokerage services in the world of forex trading, for novice investors, the question is how to choose the best Forex broker in the world? Here are the basics on how to decide on a forex broker.
1. Brokerage security
Consider several important things before deciding and using a forex broker platform. Every forex broker has many differences, from trading conditions and instruments offered to additional services that help the whole process. All of these things play a role in shaping the special characteristics of Forex brokers and their quality.
Must resolve security questions first. The security of the broker you are considering trading and making transactions with must be modern and sophisticated. It means that a lot of effort is put into maintaining strong security for the entire service. Namely, from registration, and verification, to login and withdrawal and deposit, all steps must be secure to make the trading experience as safe as possible.
2. Separate account or not?
Talking about funds, the true forex broker uses the concept of a separate account or segregated account. Trusted brokers separate client funds from their own. It is important, especially in the rare case of an insolvent broker, because the trader’s funds will remain safe.
3. Check the legality
Security conditions are closely related to legality. If licensed under the supervision of the relevant Financial bodies in several countries, you have fundamental guarantees of your funds and personal data safety, risk management architecture, and segregated accounts.
4. There is a physical office or not
Being local is significant. If a broker has a physical office, it adds credibility, reputation, reliability, and convenience. Suppose, in very rare cases, you cannot resolve your problem through online Customer Service. In that case, you may have the option to go directly to the forex broker’s office at the address clearly stated on the website. You can also report it to the relevant financial agency if you feel that all the help and solutions from official brokers do not satisfy you.
5. Is there any new client education?
A positive trend supported by the increasing number of operating brokers is the educational service of the forex broker. It is very significant to educate new clients about the basics of forex trading and provide education that forex is a financial instrument to invest in.
In addition to beginner education, forex brokers also need to ensure that education and other information for all traders stay up-to-date with the latest developments, both in terms of strategy education and world market developments. If the educational content is interactive, complete, easy, and constantly adapts to the latest findings from the industry, you have found a broker who is “trying” to educate his traders so that he will grow with them.
6. Forex brokers as business partners
Trust is a must. It relates to the legal aspect as well. But what we mean here is if a broker has lots of good and positive reviews, often mentioned viral in the media and on social media, potential traders will gain confidence. And it is through trust and confidence, that traders interact with trustworthy business partners. Excellent forex brokers are trustworthy and reliable business partners.
Many people don’t care about the importance of choosing a broker for cheap or expensive reasons, but we need to ensure legality, security, and features. In addition, forex brokers also need to continue to educate all their clients so that the client’s portfolio grows, not just chasing large transactions but not lasting long.