Tips for Choosing an Online Forex Broker

The CFD and Forex offer for individuals have evolved a lot. In this context, we tackle the choice of CFD and Forex broker before you make an investment in the market of derivatives and currencies.

The broker: a quality means regulation compliance

Forex brokers ought to register with the Futures Commission Merchant (FCM), and their actions are regulated by the Commodity Futures Trading Commission (CFTC). You can find this info on the broker’s website.

Also, check the regulatory authority on which the broker depends. Indeed, they are not all equally strict or active. You can, of course, opt for a broker based in your country’s jurisdiction but be aware that the FSA (regulator in the United Kingdom), as well as the NFA and CFTC (American regulators), are among the most demanding authorities.

You can therefore turn to a broker whose head office will be in London or New York. As the currency market is an over-the-counter, unregulated market, it is essential to contact a company regulated by an authority to which you can turn in the event of a dispute.

Trading tools tailored to clients’ needs

Forex brokers offer several trading platforms to their clients for their trading needs. It can be an “in-house” developed platform or a third-party platform like MetaTrader. These trading platforms offer real-time charts, technical analysis tools, real-time information and data, and even trading support.

The differentiating factors between brokers will largely be based on the technologies provided by brokers to their clients. That explains the development of automation tools that allow brokers to offer their clients more efficient and user-friendly trading platforms.

The goal is, of course, to attract more traders. Copy trading is an additional tool available to clients by certain brokers. It allows you to base your trading decisions on the financial information generated by other traders with the possibility of automating the replication of the decision-making of the gurus (experienced and copied traders) whose portfolios are open and the positions taken are visible to all.

Before committing to a broker, request free trials to test different trading platforms.

Tight commissions and spreads

The spread, calculated in pips, is the difference between the price at which a currency can be bought and the one at which it can be sold at any time. Forex brokers usually do not earn a commission, so this spread is their only source of income. By comparing brokers, you will find that the differences between the spread amounts on CFDs and Forex are as large as those in stock brokerage commissions.

Quality service for investors

Brokers must provide a quality service that demonstrates their in-depth knowledge of the financial markets. In that way, they will be able to gain the confidence of investors. Webinars, ebooks, MOOCs, trading videos, regular macroeconomic updates, articles, there is no shortage of possibilities to train and supervise traders who use their offers.

The goal is simple. They provide clients with the best possible training and give them all the cards they need to trade successfully! By having access to all the information and training on the tools, clients turn into real professional traders, ready to succeed and, therefore, satisfied with their broker!

Visit forex broker listing to learn about the best forex brokers to invest with.

Several types of accounts.

The smallest account is called the mini account. It allows you to exchange your currencies with a minimum of 100 – 500 euros. Also, it allows you to test the services of the forex broker. Then, the standard account, often starting at 2,000 euros, allows you to benefit from more services or trading tools. Premium accounts start from 10,000 euros and offer “VIP” services.

The new regulations require forex brokers to offer lower-risk accounts with a stop order for each position. It’s for the sake of preventing investors from losing more than their initial stake.