5 Factors that a Good Broker Need to Have
To trade in the Forex market, traders need a broker to facilitate trades. Not all brokers are equal. Choosing a good broker can make all the difference where it matters most – your bottom line.
A good Forex broker will provide you with peace of mind, security and the best opportunities to succeed with your trading. Good brokers will provide you with valuable reasons to choose them. These include the following points.
- Education and training – the more informed you are, the better your trading decision making will be. Good brokers understand the need to give traders as much timely information as possible.Education and training need to be provided for traders at all experience levels. Webinars, training, eBooks and articles and video instruction can all be provided to help traders understand the Forex market.
- Access to liquidity providers. Liquidity providers give brokers the freedom to buy and sell at any price. The more access a broker has to liquidity providers, the more flexibility they have in their dealing rates and spreads. This flexibility enables the broker to offer the trader the best possible trading price.
- Service. This should be non-negotiable. Good service makes trading easier and allows you the ability to keep informed at all times. Good brokers will make their business to provide you with one click trading enabling super quick execution orders; competitive spreads with low slippage, easy access to funds, 24-hour support and access to education. Regulatory compliance. A good broker will ensure that you are aware that they are registered with the relevant regulatory body. This should provide you with valuable assurance that the broker is reputable and reliable. Regulatory compliance means that you can be assured that the Forex broker is sufficiently capitalized to manage trading losses, holds your funds in secure segregated accounts, and upholds fair dealing practices to ensure your trades will be executed at the current market price.
- State of the art trading tools. To participate in Forex trading you need a reliable trading platform. You’ll want your broker to supply you with software that is both easy to use and insightful as well as having a range of features that make it powerful enough to meet all your Forex trading requirements.
Most competent Forex brokers will offer clients demo accounts allowing you the opportunity to take their trading platform software for a trial run before signing up for a real account.
There are two tools, you must know before entering the forex market.
First, Metatrader 4 (MT4) is widely recognised with the Forex trading community as the leading Forex trading platform. The highly customizable platform is widely used by experienced traders. It offers a wide range of charting and back testing tools.
Second, the Metatrader 5 has more power and precision than the meta trader 4, offering an advanced trading system and signal platform.
In the end, it is up to you to choose the tool that will help you the most. Last but not the least, good brokers provide these services and tools as a matter of course.