The Key Considerations When Choosing a Forex Broker

Choosing a Forex Broker

There are some astounding facts surrounding the forex market, with this entity thought to be worth a staggering £1.934 quadrillion (or 2.5-times to world’s total GDP to you and me).

With this in mind, it’s little wonder that the market remains such a draw aspiring traders, particularly when you consider its exceptional leverage and the ability to profit even as the value of underlying assets continues to decline.

Still, the forex market is also incredibly volatile, and much depends on your ability to partner with a reputable broker such as ATFX. Here are some of the key considerations when choosing a platform:

Security

Let’s start with the basics; as it’s imperative that you select a reputable broker that’s fully licensed and capable of offering a high level of security.

Your first port of call as a trader should be to ensure that a potential broker is fully licensed and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).

You can rest assured that any brokers licensed by these entities have been comprehensively vetted and verified, both in terms of the products that they provide and the way in which they deliver their service.

Transaction Costs

Regardless of your risk profile or outlook as a currency trader, it’s important to consider the underlying cost of trading before you start in earnest.

More specifically, your broker may require you to pay fixed fees or commission costs, which eat into your capital and any potential profits.

You’ll certainly have to pay for either the spread or a commission cost on every single trade, so we’d recommend that you compare the market to find the most competitive fee structure.

However, you should refrain from sacrificing security for the lowest possible commission cost, as it’s important to maintain an overview of your requirements and achieve genuine value for your hard-earned money.

Deposit and Withdrawal

Whilst commission costs and fees are unavoidable in some instances, such restrictions should not be applied to your deposits and withdrawals.

In fact, a reputable FX broker should enable you to deposit funds and withdraw your earnings with the minimum of fuss.

Make no mistake; there’s no viable reason why brokers should restrict your ability to complete such financial transactions, apart from ensuring that you have the minimum capital required to execute trades in your account.

So, be sure to read the small print associated with an online broker before opening your account, keeping your eyes peeled for any fees or restrictions associated with the withdrawal of accrued funds.