What is the best Forex broker? A common question among those who are starting out in this currency market; unfortunately, it’s impossible to say that one option is better than another, because while some companies offer greater advantages – while others end up being a fraud – it all depends on one’s needs.
This is why this note focuses on providing you with the elements that you will need to analyze to make the right decision, as well as the parameters that a reliable broker must meet; stick to the end, and you will have the tools and information necessary to resolve your concerns.
How to identify a good broker?
In a market that is growing by leaps and bounds, it is normal that more and more companies are joining to offer services as Forex brokers; although this could be an advantage by having more options, it is also possible that it will play against you, because some lack the necessary experience, or worse, end up being a fraud.
Before such a panorama comes what seems to be an avalanche of questions How to identify a reliable broker? How safe will my money be? Who regulates the company? Will I receive timely attention to a problem? What is the most viable alternative for a beginner? and stop counting, solve them, or at least most of them, is what is now intended.
Factors to consider when choosing a good broker
When the goal is to choose the best broker for trading, it becomes imperative to take care of the following aspects:
– Regulation and security:
It is evident that the chosen broker has to comply with the regulations established by law, otherwise, it will be an investment with potential risk of losing everything; regarding security, it will be important that the selected option has bank accounts in Europe, if possible, segregated.
– Diversity in terms of trading instruments:
Although it is not your objective in principle, do not rule out the possibility of wanting to invest in several markets simultaneously, so it will be essential that the chosen broker provides you with a wide variety.
Being an indispensable tool for trading, it will be crucial that the broker offers an environment in which you feel comfortable and fits your requirements; likewise, that he puts at your disposal a demo account with which you have the opportunity to evaluate its flexibility and ease of use.
– Customer Service:
No matter how good the selected broker is, doubts and inconveniences are the order of the day, making it elementary not only to provide technical service, but to show interest and friendly attention when needed.
– Training courses:
Although brokers are prohibited from offering investment advice, the best companies propose courses and training for trading novices, so that they know the basic terminology and have adequate resources through good education.
Assuming that your search is oriented to brokers with the lowest spreads, you will need to stay alert, the least you need is to fall into marketing tricks that end up being a fraud disguised as attractive promotions; instead, you should pay more attention to the quality of order execution and slippage.
Privacy has to be a priority!
It is a reality, although mistaken, that it is common to link Forex trading with scams, the reason being? the parade of companies that hide their unscrupulous intentions behind publicity loaded with false information and attractive promises; among the points that allow us to differentiate good brokers from fraudulent ones, there is undoubtedly the issue of privacy. .
In addition to being a potentially profitable experience, trading in Forex has to be safe, this implies that the personal data provided at the time of registration, will not leave or fall into the hands of third parties under any circumstances.
The best broker? a regulated one
One aspect that confers reliability to the broker who intends to choose is to have the regulation of the appropriate entities; and that is that the availability of a European passport is enough for a financial company registered in any country of the European Union to provide the service in other nations, in fact it does not even require other agreements.
Regulation of the Financial Conduct Authority:
The FCA is one of the most rigorous authorities in Europe, so having this regulation is a sufficient guarantee of trust, something that a professional website does not offer.
What is the Financial Services Compensation Scheme (FSCS)?
How does it sound to have a support in the event that the broker goes bankrupt? This is precisely what the FSCS offers; it is basically a compensation fund that works as a last resort to guarantee the financial losses of the broker.