With the booming of online trading in the global financial market, many players provide forex trading. However, choosing your broker is sometimes a more difficult task than expected.
Here are the essential questions you should ask your broker before opening an account.
1. Is the broker regulated by financial authority?
It’s first but also an elimination question. A broker must be regulated and to be able to operate in your country. Unregulated brokers do not have the right to practice and can turn out to be financial scams.
2. Is it possible to trade in the demo?
All trustworthy Forex brokers allow trading in demo mode. If you are lucky enough to come across a broker that offers this option, do not hesitate to take advantage of it, even if you do not plan to open a real account afterward.
3. What is the minimum trade size?
If you are inexperienced in trading, opt for a Forex broker, which allows you to have trades of only a few euros (5 euros, for example) to initiate you to trading Forex without taking too much risk.
4. Is there a free training program?
At first glance, trading Forex seems simple. In general, it is, but the more you learn the more you profit from the market. Always favor a broker who offers you training or follow-up, moreover free. Some brokers, in particular, offer ebooks on trading Forex, which is very useful.
5. Is it possible to withdraw my earnings at any time free of charge?
The best is to choose a broker who allows you to withdraw your money at any time, free of charge. It is common for a minimum amount of 50 euros to be required to complete a transfer. However, some brokers do not allow more than one withdrawal per month unless they pay a significant fee.
6. Is there real customer service in your language?
Customer service is the first point of contact in all your dealings with the trading Forex broker. Therefore, it is advisable to choose efficient customer service and, if possible, in your native language. Get an overview of customer service by using it at least once to get a feel for it. All brokers specify that they can be reached by email, chat, or even phone, but often no one answers the chat or is on the phone within a reasonable time. Better to check this aspect before investing your money.
7. What Trading Platforms Does the Broker Offer?
You have to pay attention to the trading platforms that the broker offers to traders. A MetaTrader 4 broker (or MT4 broker) thus provides its traders with the most widely used Forex platform in the world.
8. Is it a Multi-Market Broker?
Finally, even if you want to trade on the Forex market exclusively and are therefore specifically looking for an FX broker, do not hesitate to choose a multi-market broker instead.
That will allow you to open up to other markets without looking for a new broker. Keep in mind that it is always interesting, if not safer, to diversify your portfolio.