There are a lot of great online Forex brokers offering excellent trading platforms and services. However, if you’re a newly minted trader looking to take your first steps in the world of forex trading, what do you look for when choosing a broker? The following list details the top 3 features that all new traders should know before signing up with an FX broker.
- Well researched and user-friendly platform
- Educated customer service available around the clock
- No hidden fees or commissions
Many newbie traders often overlook these key points. Let’s take some time to discuss each one separately.
Well researched platform
A well-researched trading platform means that it is user friendly, intuitive, and straightforward. The more intuitive the platform, the better new traders can be at trading. New traders do not have much experience, so they need a simple platform that lets them learn through practical hands-on training. An un-researched platform will confuse new traders because it requires a deep understanding of the markets to get the most out of it.
Educated customer service
Customer service is available for all traders because when you are in the market, you might need help quickly and cannot wait till office hours or weekends when customer service is available. Educated customer service representatives know how to answer your questions satisfactorily and guide you in case something goes wrong with your order during trading hours. Thus, check whether the customer service is available around the clock.
No hidden fees or commissions
Traders should check whether they will be charged for depositing and withdrawing funds from their accounts before signing up with a broker. Brokers often charge you withdrawal and deposit fees, which is fine if this fee is indicated. Still, it becomes difficult to negotiate hidden charges because they are not informed beforehand.
You can open accounts for different purposes with any broker. Still, only the best ones will allow full access to demo accounts for beginners wishing to practise before trading with real money. The larger firms include global investment banks such as Barclays Capital, Credit Suisse and HSBC, while others are locally owned. Some offer only high-value accounts with access to various markets and research tools, while others allow lower-value transactions and mini accounts.
Professional traders rely on leverage to magnify profits or losses, but newbies can quickly lose money if they don’t know how it works. The good brokers ensure that clients understand the risks before starting by offering a risk warning tool for each site. They may even limit leverage rates according to client profiles and closely monitor trader activity to detect abnormal trading patterns.
If you’re starting, you probably have no idea what forex is or how online currency trading works, so this might be your biggest challenge. Many of the larger FX brokers in Australia offer a variety of educational resources, even for beginners. You can watch tutorial videos or read educational material on their blogs. At the same time, some have developed mobile apps with educational content to help you learn when you are on the go.
Traders need reliable information to invest wisely, so keeping up-to-date with market movements is essential. The best FX broker in Australia will provide plenty of market research tools that let you evaluate current trends and future possibilities. From simple graphs that show past price movements to complex technical analysis tools which crunch vast volumes of data in seconds, you’ll be able to compare currency prices over any period.
Bear in mind that no single broker is suitable for everyone. Before choosing one, it is vital to be aware of what each has to offer, so make sure to compare at least three or four before opening an account. Overall, new traders need as much information as possible before signing up, as it will allow them to make an educated choice of who they want to trade with.
Don’t stop now, continue learning about efficient trading to become a true pro.