As we've already touched on, there are hundreds offering great service, some of which are not so good. Therefore, it can be difficult to see the forest for the trees. With this in mind, we have compiled a list of the most important metrics to look out for when searching for the ideal forex broker. It's also important to think carefully about what your personal trading goals might be to find out what matters most to you.
Licence holders
We believe that by choosing a fully licensed broker in https://exnesslatam.com/cuenta-pro/, you can protect yourself from the dangers that lurk in the internet online trading space. After all, handing over your money to a company that is free from regulation is risky business.
Ultimately, regulators such as the FCA (Financial Conduct Authority) and CySEC (Cyprus Securities and Exchange Commission) were created to keep the financial services space clean and fair for all.
By only using licensed brokers, you are actually providing yourself with various regulatory protections, including protection from financial crime and the loss of your capital should the broker go bankrupt. This is because any trading platform that works with the regulator will segregate your client funds from their own.
Available FX pairs
Another important metric to look out for when finding the right broker for you is which forex pairs are available for trading. We have already covered tradable currency pairs in the forex market. Although there are over 100 forex pairs, not every trading platform can give you access to the same markets.
With this in mind, you should always check what is available to you before you fully sign up. For example, yYou may want to trade a pair that includes an emerging market currency such as USD / MXN (US dollar / Mexican peso). After all, not every trading site can offer you the same pairs.
Commissions and fees
Although it seems obvious to check fees, it can be easy to get carried away by promises of overnight success and the impressive number of financial instruments on offer. The fact is, if your broker charges you $10 for every position you open and close, you need to be aware of this so you can factor it into your potential profits.
A trading platform is a business and therefore needs to make money not only to survive but also to provide you with a service. The good news is that there are countless online brokers that offer you commission-free access to the forex market. This means that instead of paying a commission fee on each trade or a percentage of your order value, you simply pay spreads and overnight funding fees.
Supported payment options
Before choosing a broker, you need to know how to fund your trading account. To access the global forex market, you need to deposit the minimum amount (set by the broker) into your account. The majority of brokerages accept credit / debit cards, wire transfers and some e-wallets.
However, as we said earlier, you need to check this yourself before you get too far into the research process. Also note that while paying by bank transfer is popular, it takes longer to reach your account (2 or 3 business days).