Hiring a Best FX Broker helps you access the virtual currency market. When you are interested in investing in the online money market, one of the most important decisions you need to make is choosing a forex broker. However, before you get too far into your research, remember that not all brokers are created equal. Some have strong reputations, while others have dubious backgrounds and less-than-ideal track records.
Before you choose a forex broker, it’s essential to know what characteristics separate the reputable brokers from those that aren’t worth your time. Here are five things every prospective client should look for in an FX broker:
Currency pairs – A good place to start is to determine which currency pair(s) you’d like to invest in and then find a broker that specializes in them. If you like trading the Euro, make sure your broker offers strong liquidity for this currency pair. The same goes for other popular pairs such as the British Pound (GBP/USD) and Swiss Franc (CHF).
Minimum required deposit – Of course, it never hurts to look for brokers that offer the lowest brokerage fees.
Keen spreads – You should see that your broker has great margins or spreads, i.e., the difference between the market rate at which you buy and sell currencies. After all, if your broker charges you a high markup fee, you’ll be losing money every time you trade these currencies!
Bonus offers – Even the most impressive brokers offer welcome bonus packages to new clients. But if you don’t have a significant amount of money to invest, it doesn’t make sense to take advantage of this offer. Instead, look for FX brokers that offer other incentives such as low minimum deposit requirement, low margin, etc.
Customer service – Most reputable FX brokers offer 24-hour customer service. Of course, the top brokers should be reachable through live chat and phone as well. Some even have representatives stationed at popular trading forums such as Forex Factory and TradingMentor.
If you’re still stumped in your search for the best FX broker, don’t forget that you can always ask questions on forums or read reviews posted by other traders. You may also want to check their past records with regulatory bodies like the US Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA).
When you think about it, there’s no such thing as a “perfect” broker. Everyone has certain needs and preferences; what may work for one person may not be good enough for someone else. So remember to keep your criteria in mind before making any final decisions.