On Monday’s podcast we told you how difficult it is to trade currencies. Just like with any investment, you need to learn the ropes….not just invest blindly. So if you’re going to try the Forex, there are a lot of brokers that you can choose from. It’s important that you take the time to do the research so that you find the one that best fits your needs and goals.
First, there is no point in investing with a broker that won’t let you trade currencies if you really want to trade currencies. Sure you might be happy for the short-term, but over time, you are going to be frustrated more and more and eventually jump ship. You could have saved yourself the headache had you simply compared forex brokers in the first place.
But what should you look for when reading a forex broker comparison? Luckily I am here to help with that. Below you will find the keys things to look for and what to take into account when searching for a forex broker. While it will take some time, in the long run, it is more than worth your time.
Keys To Look For In A Forex Broker
There are a lot of things to consider when looking for a forex broker, but here are the biggies you need to pay attention to:
Account Minimum: You need to match up how much you are going to start trading with how much a certain broker requires for you to open an account up. While a higher minimum should not disqualify a broker, you need to take this into account so you know if you can start trading now or if you need to save up some more money.
Platform Type: Each forex broker has their own platform and you need to know how theirs operates. Some brokers built their platforms in-house while others outsourced them. Some allow for customization while others don’t. The key here is making sure the platform has the things you need to be a successful trader and none of the stuff that muddies up the screen.
Regulation: Regulation is important when trading stocks, mutual funds or forex. As such, you need to see how the firm you are considering is regulated. While you never want to have to make a claim, it’s best to know from the start that they are on the up-and-up when it comes to the laws and that you have some protection should something happen.
User Reviews: While seeing all of the above is good, you also want the input from real users. For this reason, you need to spend a good amount of time reading various forex brokers reviews. Through reading the input from different users, you can see the likes and dislikes they each have and can begin to really get a clear picture of the advantages and disadvantages of each forex broker you are considering. While it may be tempting to just take into account one stellar forex broker review, you have to read a bunch to get a real sense of the broker.
As I mentioned at the start, you have to take the time to find the right broker for you so that long-term you will be happy. Otherwise, you will just waste more time jumping from one broker to another every few years trying to figure out what it is you really want. Take the time now and read various forex broker reviews to help you make the best decision for your needs and you can focus on what matters most – making trades and making money.