- Comprehensive Trading Training Resources - Many brokers offer a range of training materials to help traders master their skills. They usually include webinars, videos, courses, tutorials and articles.
- Unlimited access to demo account accounts - most if not all forex brokers offer demo trading accounts to their clients. This is especially useful if you are new to the Forex Broker trading world or if you want to test brokerage platforms before you actually trade.
- User Friendly Trading Platforms - There are a lot of trading platforms on the market, some of which are more complex than others. As a novice dealer, you do not need a sophisticated platform with features such as EA’s sophisticated trading strategies. This will come later, but now you should find a fast and easy to grasp platform.
For professional traders, their trading needs differ significantly from those of a beginner trader. Generally, professional traders prefer brokers which can provide them with:
- Comprehensive trading tools – as a professional trader you will now need a variety of tools including commission calculator, economic calendar and of course complex live charts in order to implement trading strategies.
- High leverage – not for the faint hearted, professionals will seek to use leverage in order to multiply their capital. Leverage increases the risk and equally increases the reward.
- Low spreads – if you trade a lot you want to ensure that your spreads aren’t eating away at your capital. It’s important to check the spreads payable before you select a broker, usually the greater the account type you take the lower are your spreads.
Generally for a day trader, most brokers will be able to meet their trading needs. However given the shorter time period with day traders are trading with, it is best that the broker is able to provide a diverse range of instruments for the day trader to scout for trading opportunities. These can include a signal service, tools like an economic calendar, updating market news and also earnings reports. As you will probably be placing more short term trades make sure that you are aware of the spreads before you trade.
Scalpers are traders who hold their market positions for an extremely short period. While they only hold a market position a short period of time, the frequency of their trades is higher than the average trader. Their objective is only to make a small profit on all the trades that they make spread across a large number of trades. Note that not all brokers allow scalping. As such if you intend to trade as a scalper, you should always check with the broker that you intend to sign up if they allow scalping.
The majority of the forex brokers in the industry offer traders a selection of trading accounts to cater for different categories of traders.
- Micro Account – The smallest type of trading account is the Micro trading account where one trading lot is equivalent to 1000 units of the instrument traded.
- Mini Account – The next type of trading account higher up the hierarchy is the Mini account where one lot represents 10,000 units.
- Standard Account – The standard account is where one lot is equivalent to 100,000 units.
With the Micro and Mini account, only a low minimum initial investment is required to let you start trading. With the standard account, although the minimum investment may vary from broker to broker, generally you will need a higher amount of trading capital. Given the varying minimum investment for each type of trading account, you should select the trading account that is commensurate with your investment capital.
Most beginner traders tend to forget to factor in customer service when making their choice of the broker to sign up with. They may not realize the importance customer service plays in their overall trading experience. With customer service, it is not whether you will ever need their assistance but rather a question of when you will need their assistance. Because regardless of how experienced or knowledgeable a trader might be, there will always come a time when assistance from customer service is required. When that time comes, you want to be able to get in touch with the support team without any difficulties. So it is important to check if the broker that you intend to sign up with is able to provide you with reliable customer support.
Check to see if there are multiple ways of contacting customer support. Most brokers will provide their clients with several ways such as email, live chat and telephone for their clients to get in touch with customer support. In short, you don’t want to be in a position where you have to spend countless nights worrying about what your broker is going to do with your problem.
In an industry as competitive as the online forex trading industry, some brokers will try to distinguish themselves from other brokers, by offering additional value added services such as free market analysis, real time news feeds and trading signals. Most of these value added services are provided free of charge but there are some brokers which may require you to deposit a minimum amount before you can have access to these services.
If you have any general questions regarding brokers we can usually advise and recommend, however for more specific information you can read our broker reviews for deep insight. Our video reviews cover many aspects of the trading cycle. Please note, it is important that if you have any doubts about a broker’s product offerings or service, by asking the right questions you can clear up any ambiguity that you might have before they develop into an issue later after you sign up.
The kind of questions that you should ask include:
- How the broker maintains the safety of your funds
- The broker’s regulatory status
- The range of instruments that is available for trading
- Their business model
- Their customer service hours
- Their deposit and withdrawal process and whether there any fees involved
- Whether there are any conditions attached to the value added services provided
We are here to help with that! Check out our list above and choose the most suitable broker for you.
Should I Pick a Regulated Broker?
Yes, you should try to pick a regulated broker to work with. This ensures recourse in the event of a dispute or should your broker face insolvency. Remember by using a regulated broker you will also have access to an investor compensation fund, which insure your deposit up to a certain amount.
You should consider a wide range of platforms and even offer the platform you want to use, tested, ideal. Check out the additional resources provided by this broker, such as: Signal services, educational tools, transaction transcripts. Be sure to check the difference and account type before sending money.
As mentioned above, there are many factors to consider when choosing your broker. However, you will be able to see with the help of this guide, that the broker is more suitable for your needs. To simplify your search further, we have conducted in-depth reviews and personal brokerage reviews on our recommendation list to ensure that they meet the appropriate standards. Once you have found the right broker, you can focus more on your trading activity and act safer, thus reducing the chance of success in the rising session with the market.