Learn how you can find the best forex broker in 2019
If you are looking for the best forex broker in South Africa or any other country for that matter, you might have a hard time finding one that meets all the requirements and is reliable enough to trust with your hard-earned money. However, if you know what you are looking for and as long as your expectations are somewhat realistic, you will find that there are some brokers that may fit the bill.
You should know by now that trading forex is inherently risky, due in part to the unpredictable nature of the currency markets, which makes it of utmost importance that you find a forex broker that is both trustworthy as well as willing to provide support and favorable trading conditions.
Keep reading to find out what makes a forex broker stand out and how to find the best forex broker in 2019.
One of the most crucial factors to consider before signing up for an account is license and regulation. You need to ensure that your broker has to answer to a financial authority and that it complies with its mandates which mainly exist to protect the customers and their investments. Put simply, any broker that aims to be the best forex broker 2019 will first look to receive a license from the financial regulator in the region that it operates.
If a forex broker is unlicensed, you have no guarantees that your funds are protected in case of foreclosure or that the broker actually follows ethical practices and doesn’t monitor your trades in order to hit you with a stop loss at the most convenient time.
Forex traders are here to make money and that is why favorable pricing is obviously one of the most important and attractive reasons to consider a forex broker. The better the pricing or the tighter the spread, the more money goes into your pockets after a winning trade.
You should check the trading conditions of several different brokers to see for yourself what’s the average spread for the instruments you like to trade. If most brokers offer a maximum of 5 pips spread for EUR/USD and your broker usually charges more than that then you can definitely assume that you aren’t trading with the best broker of 2019.
Also, it’s common for forex brokers to provide different trading account types or tiers with different trading conditions. For example, some account types may be more suited for beginner traders with lower minimum deposit limits and lower position sizes while accounts targeted to professional traders may offer more competitive pricing but require a higher minimum deposit for registration.
The leverage ratio available for each account type may differ as well. Standard accounts normally offer lower leverage ratios than the ones aimed at experienced traders. However, you shouldn’t aim to exceed a 100:1 leverage since it exposes your trades to dangerous levels of risk if you are not skilled enough in risk and money management strategies.
While beginner traders aren’t usually that demanding in terms of the instruments that are made available by their broker, you should at least ensure that the assets you aim to trade are included in your broker’s offering.
Admittedly, you would be hard-pressed to find a broker that doesn’t provide trading in the popular currency pairs or commodities like gold and oil, if you wish to take advantage of opportunities in cannabis stocks or cryptocurrencies, for example, you should make sure that your broker provides these instruments before opening an account.
While the best forex broker of 2019 should give you no reason to get in touch with customer support, it goes without saying that, for whatever reason, you may run into some issues with logging in to the trading platform, making a withdrawal or you just need general guidance.
Ideally, customer support representatives should be able to respond in a timely fashion and be knowledgeable enough to understand what the problem as well as be efficient in troubleshooting and providing assistance. Unfortunately, this isn’t always the case, especially since forex brokers that invest in the proper training of their customer support agents are few and far between.
An effective way to make sure that you will be receiving quality customer service by your broker is to register for a demo account beforehand and request assistance while figuring out the trading platform.
Also, it would be prudent to inquire about the different ways you can deposit and withdraw funds from your trading accounts and how long these transactions take to process.