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The financial market crash caused by the coronavirus crisis marks a renewal of people’s interest in the financial markets. Attracted by an attractive equity market, more than 150,000 new individual investors took long positions in March 2021. For 90% of them, it is not a matter of simple opportunistic back and forths, but of positions maintained at a minimum over the medium term.
Younger than the usual investors, these new equity market clients should develop over time a new appetite for other financial products, such as the currency market for example. Before embarking on Forex, however, it is essential to select a good broker. Here are some tips for identifying the platform that suits your needs.
Choose a regulated forex broker
When looking for a Forex platform, make an initial selection between forex brokers regulated by the financial authorities and regulatory bodies. By choosing a broker accredited by a regulatory body, you have the assurance of investing through a service that respects legislation at every stage of its operation.
To check the accreditation of a forex broker, go to the website of the financial authority in your country. This register of financial agents includes all the companies authorized to operate on the financial markets. It is important to check financial agents before choosing a Forex broker, as it provides a level of assurance that the broker is operating legally and ethically in the financial markets. The broker has to have a strong reputation for providing a reliable and accessible trading platform, as well as a range of educational resources to help traders make informed decisions. Reading broker reviews is also an important part of the process. Broker reviews provide valuable insights into the experiences of other traders and can help you. For example, you can read FXopen, Exness broker review, or Forex4You.
Opt for a powerful trading platform
To perform on the forex and CFD (contracts for difference) market, it is essential to work with an ergonomic and intuitive trading platform that meets all of your needs. We recommend reading CTL Markets Review and check out what this brokerage has to offer you.
The most successful brokers offer different tools and options to allow their clients to develop all types of trading strategies possible. To identify the best forex brokers, trust the Social Proof. You will be able to get a good opinion on many market platforms.
Check the quality of the training offered
Another good way to get a good idea of the quality of an online broker is to assess the quality of their training offer. These free training courses should be designed to allow forex beginners to understand the basics of the currency market, then to perfect their expertise through various training modules. As a general rule, the more the platform invests in a complete, scalable, multimedia and varied training offer, the more it offers tools adapted to the needs of new forex investors.
Analyze brokerage fees and spreads
When choosing your forex broker, consider integrating the impact of brokerage fees into your profitability. In particular, you must analyze all trading costs without neglecting those of spreads and swaps.
This task assumes that you have a good understanding of the different types of brokerage fees such as spread finance, trading commissions or swap fees. In addition to these costs related to your activity in the foreign exchange markets, also check the policy of the analyzed brokers regarding inactivity fees, foreign currency conversion fees and withdrawal fees.
We hope that this article helped you a bit to grasp the main features of the Forex brokers. We wish you much luck in your trading journey.