This blog is to help new traders with the question of how to select a Forex broker.
Confused retail traders, who want to know how to select a Forex broker, send a lot of emails to our support team. So I will make specific recommendations and talk about the brokers that I have traded money with in the past.
The other goal of this post is to help you understand all of the elements that you should consider when you select a Forex broker.
Finding a reliable broker is a crucial part of building up your trading business and making a sustainable profit.
Using the wrong broker could result in serious costs and financial losses.
Fortunately, there are a few very simple steps you can take to ensure that you use a credible broker.
This will give you a high probability of protecting your money and building a sustainable trading business.
My career as a professional trader forges my own experience. Because I had fairly large sums under management, brokers would naturally fight for our business.
I have traded with many brokers and the main experience I have had is that they all tend to be about the same.
As long as you make sure that you select a Forex broker who has credibility, you shouldn’t have a problem.
How to select a Forex broker
Are your brokers regulated? This is the first and most important question.
Regulation is very important because it ensures that the broker adheres to very specific rules. Its job is to protect retail individuals from deception or misguidance.
One important point to highlight is that the effectiveness of regulation depends heavily on the body regulating it.
This means that not all regulation is equal. In fact, some regulators are as bad as no regulator at all.
The best regulators are the ones that make it difficult for brokers to begin operating in the first place.
This ensures that they have to complete all of the checks and have everything they need in place.
Generally, this will deter less reputable brokers and they will access regulation in less respected jurisdictions.
The jurisdictions that I personally consider reputable include the UK, US, EU and Switzerland. I refer to these as ‘headline jurisdictions’ as they are the most advanced and secure.
Anywhere else is either much less developed or has had issues with protecting retail traders from unscrupulous brokers. This includes places that may seem solid, such as New Zealand and Cyprus.
Being in the UK myself I have always used FCA regulated brokers because of the safeguards they have in place.
These safeguards came to the rescue of a lot of traders in 2015 when several regulated brokers collapsed during the SNB crisis.
All UK based accounts were protected from negative balances and losing their entire capital.
I have also used brokers based in Switzerland to good effect.
Other features to look out for
Another important feature is the customer support system that the broker has in place. This should be responsive and helpful.
Checking for a good support team will save a lot of frustration and concern later on.
Finally, a good broker will have a solid base of independent reviews online.
It is important to get a wide range of views from people that have actively traded with them before.
I would reasonably expect a good broker to maintain a rating of around 3 stars or above. This is a good sign when the volume of reviews is very high.
Reading up and identifying any common issues is the most important part for you.
Your ideal scenario is to find a regulated broker in a headline jurisdiction. They should have a responsive support team and a collection of reasonable online reviews.
While there’s no guarantee of success, this combination gives you the highest possible chance of finding it.
Brokers I have traded with
I have traded with many brokers and have never had a bad experience with trading and withdrawing money.
Despite this, I would only recommend them IC MARKET only
One of the best broker i found.
- Fast execution
- no slippage
- low spread
- minimum deposit 200$
- one day withdrawal.
Click here to open an account on IC market.
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