Did you know that many successful traders have one thing in common? But, before we get to that one particular thing and reason for their significant success, we are here to provide you with a brief overview for those who are still unfamiliar with Forex.
Forex represents the acronym of the foreign exchange market for trading currency pairs. The market is probably one of the most liquid financial markets globally, open 24 hours a day during the working days of the week.
Trading Forex is done on a broker platform. So, now we come to that special thing that many wealthy and successful traders have in common: the quality and reliable Forex broker.
But why is it so essential that you choose the best possible broker? How can you spot the quality from the fraudulent one?
Do proper research before you choose your broker
First of all, when you are about to choose your preferred broker, it’s mandatory to do proper research. You have to consider reading a forex broker review to get a clear picture of what that particular broker has to offer you as a trader.
Does it have a demo account in their offer? What is their minimum initial deposit? Is their customer service available 24 hours a working day? What are their account features, and are traders satisfied with them?
If you are a severe trader interested in a long-term Forex trading career, you have all the answers to these questions.
Make sure that your preferred broker is regulated
Since the internet is filled with numerous fraudulent brokers with flashy websites, you must choose a reliable one regulated by one of the regulatory agencies.
Suppose we are speaking of the United States of America. In that case, there are two crucial regulatory agencies that you need to be aware of: the Commodities Futures Trade Commission (CFTC) and the National Futures Association (NFA). When it comes to Europe, here are the most important ones:
- European Central Bank (ECB)
- Staunchly independent Switzerland, not a part of the EU, has its regulator: FINMA.
- European Securities and Markets Authority (ESMA)
- European Banking Authority (EBA)
See what you can expect from their platform and support
Did you know that 85% of beginner traders quit during their first couple of months? In many cases, a wrong choice of a non-quality broker can be one of the main reasons. The Forex broker platform must provide low-cost trades and a lot of different currency pairs.
You’d want to have the option of a demo account, especially if you are a beginner who wants to avoid significant money losses in the first couple of months. The top platform needs to provide the best possible tools and streaming data to give you the best possible user experience and quality trading.
Customer service should always be available to you
Don’t forget that one of the crucial elements of a quality Forex broker is their customer service. Don’t bother choosing that broker if they aren’t available to you anytime during their working days.
You always want to have a live person available to solve your potential trading problems as a trader. Make sure that your preferred broker provides this service 24 hours a day.
In the end, we’ve concluded that a qualified broker is mandatory for your trading business because it gives you the protection, like security, that your money will be safe with them. It provides you with peace of mind. Of course, if you choose a broker who has a good track record of its previous trading and is regulated by law.