Are you getting into the world of Forex trading, and you want to know more about choosing the right Forex broker for your business? Have you been researching what makes one brokerage firm more qualitative than another?
First of all, choosing an ideal Forex broker company of the highest quality is an uphill task nowadays. Ever since the appearance of the World Wide Web, there’ve been fraudulent websites that are causing trouble for users, stealing their personal information and bank account data.
For that reason, choosing an ideal and trustworthy Forex broker such as Exness could be a great challenge for new trades. However, before we explain what makes one Forex broke more qualitative than others, let’s explain the true meaning of a brokerage company, shall we?
Forex broker explanation
A Forex broker represents a financial service company responsible for allowing traders effective and 100% safe access to a platform for exchanging national currencies. For newbies, Forex refers to an acronym that consists of two words: “foreign” and “exchange”, while transactions in the market are, without exception, between two different types of currency.
A foreign exchange broker is also referred to as a currency trading broker or a retail broker. Forex broker clients are individuals, large financial services firms trading instead of other customers and on behalf of investment banks, etc.
Understanding a Forex broker company
Keep in mind that a single forex brokerage firm can only handle a small portion of the volume of the whole Foreign exchange market that operates 24-hours, usually 5.5 days a week. The great majority of forex transactions are between pairs of currencies of the ten different nations that compose the G10.
These nations and currencies are:
- USA: the U.S dollar (USD)
- European Union: the Euro (EUR)
- Great Britain: the pound sterling (GBP)
- Japan: the Japanese yen (JPY)
- Australia: the Australian dollar (AUD)
- New Zealand: the New Zealand dollar (NZD)
- Canada: the Canadian dollar (CAD)
- Switzerland: the Swiss franc (CHF).
What makes one broker better than another?
Once you’ve understood the leading role of a Forex broker, it’s time to understand what is it and what makes one better than the other one. To give you a proper explanation, we’ve prepared a detailed list:
- Regulation – a good Forex broker is regulated by the regulatory authorities such as the NFA or the CFTC in the USA, for example (European regulators differ from one country to another). Regulation is crucial because the majority of unregulated brokers are scam sites.
- Choice of Account – Whether you’re looking for a demo account to gain the necessary trading experience or looking for a specific type of account that is the best for your needs, a high-quality broker includes it all!
- Fantastic Customer Service – Don’t forget that the Forex market operates 24 hours a day, typically 5.5 days a week, attracting more and more traders each day. Thus, adequate 24-hour customer service is more than necessary if some issue appears. Regulated and trustworthy brokers offer customer support non-stop.
- Ease of Withdrawals and Deposits: Perhaps the most important quality of a broker is to enable ease of withdrawals and deposits. It means that you should be able to access your money in an account through the broker any time you wish, without any problems.
The best Forex broker is that company that helps you become a better trader every day and encourages you to make significantly more profits. Besides all mentioned above, ensure that your preferred broker offers excellent educational material and has positive comments across relevant brokerage forums and other websites!