Do not be deceived by great looking websites
Many newbie in forex trading get carried away by how beautiful or presentable the website of the broker is and they think great looking website has any bearing on the reliability of the broker, but the truth remains that a broker can have professional looking website yet they are far from being reliable. The flashy and professional looking website is an entirely mundane thing to use in gauging the reliability of a broker.
In the United States for example, a reliable broker would be registered with Commodity Futures Trading Commission (CFTC) and it would be a member of National Future Association (NFA). If you cannot see the particular broker registered with any of these bodies or similar regulatory bodies in their countries of origin, then you should never have any dealing with them. How do you know if a broker is registered with these associations? If they are registered, they would have their NFA membership numbers made available on their websites; you should be able to find this in their “about us” section. The regulation ensures the broker maintains integrity and it ensures your deposits are safe.
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What is their minimum deposit?Some forex brokers have limited traders by insisting only certain sets of traders register with them. Some of them demand a high minimum deposit that an average trader may not be able to meet up. Such a broker may not be the best for you as a trader. If you can only spare very small amount, look only for brokers that allow you to open account with them with that small amount that you can spare. ETX Capital is one broker that comes to mind; they allow traders to open account with very small amount to ensure traders of various categories can participate in the highly profitable forex trading market.
What is the pip spread?Another thing you must look for in a forex trading broker before you register with them is their pip spread. If the pip spread is higher than 3, do not register with them. The pip spread is the difference between the bid an ask prices and it indicates how much commissions you have to pay the broker on each trade. If the pip spread is 3 for example, it means 3 pips will be the commission you pay the broker for that particular trade. This is why every trade you enter into always starts with negative value, to show that the broker wants to deduct their commission before the trade proceeds further.Ease of withdrawal and deposit
A good broker is one that makes deposit and withdrawal processes very simple and straight to the point. Read through the funding and withdrawal policies of the broker before you register with them. Do they provide various means of depositing funds into your trading account? How long does it take them to process your withdrawals and how long does it take your deposit to reflect on your trading account? What is their minimum withdrawal and minimum deposit? These must be closely considered before you enter into any agreement with the broker. ETX Capital, for example allows their registered traders to make deposit or withdrawals via various means, like PayPal, wire transfer, credit card and several others. The flexibility makes trading a lot more interesting.