You must have noticed large number of brokers at the market. As a beginner, you might have difficulties with the choice of the right broker who is worth of your confidence and would fit your needs the best.
Search process is fairly simple if you know the features to pay attention for. Me and my team changed the number of brokers throughout our career thus I can give you the first-hand advice.
Following is the process based on simple research, containing only three steps that I used each time I looked out for a new broker.
Step 1: Check Broker Authority
Firstly, you want to make sure your broker is under the surveillance of regulating authorities and that your money is in the right hands.
- Broker regulations – The first step is to check if the broker is with any regulating authorities such as: National Futures Association (NFA), Commodity Futures Trading Commission (CFTC), Financial Service Authority (FSA). This step is very important as you want to know if there is an organization, behind your broker, to take care everything goes by the rules.
- Country – The second step reveals the country your broker is registered in. It is also good to know whether the broker of interest runs the service in your country of residence. It is smart to give advantage to the brokers in US, UK, Canada, Australia etc. comparing to the brokers registered in the third World countries.
Step 2: Pick Broker By YOUR Needs
The second steps contains the check on whether your future broker covers all of your needs. The following steps are easy to perform as all the data is public and transparent.
- Leverage – Check if your broker offers the leverage you need.
- Spread – Check if the broker offers fixed or variable spread. See if the spread suits your needs.
- Trading Platform – Check if your broker supports MetaTrader platform besides its own. This way you will have more choice. You can also see if the broker’s own platform suits your requirements.
- Account types – All the brokers offer multiple account types. It is smart to check the minimum start-off amounts to make sure your budget fits within the minimum account.
Step 3: Test Your Broker
- Open demo account – Open the demo account and test the broker’s service. If there are any inconveniences or unclear occurrences contact the support. This way you can also test the speed and quality of the support.
- Support – Check if the broker offers support in your native language. Test it in the way to call the support number and get all the wanted answers.
- Deposit and withdrawal – Make sure that the broker supports the deposit method you prefer as well as the withdrawal method to your bank account or some other money storage service.
To make your broker search easier we developed an Forex brokers list application that allows you to search through the most popular brokers according to the most important criteria, which we mentioned in the text above.
If you need more information about the described steps, or have a question on how to choose the broker, talk to us via the contact form and we will be pleased to help you.