When you know what to expect in a forex broker, you can make sure that you look in the right direction and choose one that will prove to be efficient and effective for you.
This is why it is important for you to know what the forex broker is offering you in order for you to open an account with him. What forex brokers provide does not differ from one country to another since forex markets are part of a global market.
In this internet age, a client does not have to choose a forex broker who is located in his home country and can choose a broker from anywhere in the world.
Here are some characteristics of a good global forex broker:
1. Good financial backing
Many new traders do not understand the need to check into the assets of a forex trading brokering firm. They feel that the firm does not need to have a large asset base since they would be getting deposits from clients anywhere. However, this is not true.
A good forex broker needs to have financial backing or it should have a good asset base of its own. With this assurance you will feel confident that your funds with the forex broker are secure and that the forex brokering firm will not become insolvent suddenly. Getting your money out of an insolvent firm can be very difficult.
2. Efficient trading platform
The trading platform is important software that is used in forex trading. It allows traders to manage their accounts, trade in the market, carry out technical analysis and receive forex news too.
Since it is the application that you use to place orders, it needs to be responsive and quick, given that the forex markets are extremely dynamic and volatile.
There is a simple way of checking these aspects. Every forex broker allows a demo or trial period when you can practice on the platform for a period of time. This is the best way of evaluating a forex trading platform.
3. Client friendly trading account
The trading account includes many aspects of what the forex broker is offering you. Part of the specific features of the trading account include the spreads offered, the leverage available, the minimum deposit required to open an account and the minimum lot size in which you can trade.
Aspects such as the methods of withdrawal of your funds are also included in the trading account. You need to ensure that access to your account is easy and that you will be able to retrieve your monies when you want to.
4. Customer service
The forex markets are open throughout the day and night, starting from Sunday night (when the Australian exchange market opens on its Monday morning) to Friday evening in the United States.
The market never sleeps and therefore the forex brokers providing service to clients should not sleep either. Customer service personnel should be available to answer questions at all times for clients who need clarifications or assistance.