Each trader needs a forex broker for guidance and help, but it is not that simple to find one.
The foreign exchange market can be very profitable for an investor, and this is why more and more forex traders appear every day. Nonetheless, each trader needs a forex broker for guidance and help, but it is not that simple to find one.
While there are numerous forex brokers, the real problem appears when you have to select a good one, as it can be challenging to make a choice. This article will attempt to make things easier for you, and we will share some tips which should help you find the best forex broker.
Things that you should check
For a forex broker, there are a couple of things which are mandatory. He or she must be registered with the U.S. Commodity Futures Trading Commission (CFTC) as a Retail Foreign Exchange Dealer and Futures Commission Merchant. Additionally, a forex broker must be a member of the National Futures Association (NFA)
The CFTC is an independent government agency, and it regulates the options markets and commodity futures in the United States of America. It is essential for a forex trader to be registered with them, as the goal of CFTC is to "protect market users and the public from fraud, manipulation and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive and financially-sound futures and option markets."
The NFA is another organization that regulates the futures industry in the United States. It comes up with specific services and rules which are meant to protect the entire market, as well as its members.
There are numerous currencies you can choose from, but when it comes to forex trading, you should focus on the most important currency pairs. These are the Euro/US dollar (EUR/USD), the British pound/US dollar (GBP/USD), the US dollar/Swiss franc (USD/CHF) and the US dollar/Japanese yen (USD/JPY). When you choose a broker make sure that the pairs you are interested in are included.
If you are looking for the best SA forex broker, you need to know all the details about the account. For example, when it comes to commissions and spreads, some brokers might charge a specific percentage of the spread, while others charge no commissions but have larger spreads
You should also take into account the policies for deposits and withdrawals. There are certain brokers who allow the holders of the account to fund it via PayPal, via ACH payment or online with a credit card. In some cases, even bank, personal or business checks are allowed, as well as wire transfers.
The initial deposit is also something that varies depending on the broker. You can fund a forex account with a small initial deposit, and there are numerous brokers who offer mini, standard or micro accounts which have different deposit requirements.
As forex trading does not have any breaks, customer service should be available all the time. You should also check if you can call your broker at any time of the day or if you would have to deal with an auto attendant.