Interested in trading CFDs or forex? There are a lot of brokers out there promising great opportunities, but how can you tell which one is right for you? Although you’ll find a lot of top ten lists, a cursory examination will show you that they’re all different. What you really need is to know what to look for, so that you can read reviews and broker pages in detail to establish what’s best suited to your trading needs.
Consider your trading priorities
Every trader has a different trading style so finding the right broker begins with comparing what you want to do with what they have to offer. For many traders it’s simply about finding the best available spreads, but there are a lot of other factors to consider. For instance, some brokers allow scalping and some don’t. The amount of leverage available varies and different fee structures apply, especially where overnight trades are concerned. There may or may not be a dealing desk available and you will need to establish the account type that best suits your preferred strategy.
Make sure of your security
Once you’ve found a broker that meets your basic requirements, you need to determine whether or not it’s safe to trade through. Where is it based? Is it properly regulated? What kind of reputation does it have in the trader community? Make sure that the broker you choose keeps client money in segregated accounts. That provides you with some protection in the event of it getting into financial difficulties. Check the arrangements for withdrawing your money and any associated fees.
Establish the support you need
Every broker offers different things where support is concerned. If you’re new to trading forex or CFDs, it’s useful to have support on hand, even if you only need it to help you resolve technical difficulties. Make sure that you’ll be able to speak to someone quickly if you need to during the hours when you prefer to trade. Read reviews so that you can get a clear idea of the quality and speed of support offered rather than simply relying on what the brokers themselves say.
Find a platform that feels right
To be a successful trader you need to be able to have complete clarity of focus. That makes it essential to have a straightforward, intuitive trading platform where you can find what you need immediately. There’s no one best platform where this is concerned because every individual trader wants something slightly different, but many CFD and forex brokers, understanding this, offer more than one option. Make sure that the broker you’re considering has something available that suits you.
It’s not uncommon for new traders to try out two or three different brokers before finding one they like, but once you’ve found the right one, you can settle into a long, potentially highly profitable relationship. Although there are risks involved in forex trading and no broker can protect you from those, the right broker can provide you with the tools to trade successfully.