Your choice of the Forex broker remains crucial to your trading experience. Forex is perhaps one of the largest currency markets operating today. There are several brokers vying for traders’ attention out there. And, it is clearly not easy to choose one among them. Today, in this post we’ll be documenting some of the blatant mistakes committed by traders or investors when it comes to choosing an online forex broker. Make sure you’re on your strongest guard against these common errors.
Choosing the right forex brokers: Mistakes committed by traders
Come to think about a situation. You wouldn’t really end up believing someone (whom you randomly come across on the streets) – claiming to be a forex broker. Would you? On the other hand, it would have been easier for the same person to convince you had his services been backed by a finely designed website and trading software. However, please remember that a compelling website and trading platform are not the only yardsticks for the selection of a broker. If you are basing your choice on these two factors then you are committing the first mistake. Listed below are other such mistakes that you should be aware of.
Not checking the necessary authorization
Are you checking whether the broker you are about to choose, is a member of the regulatory body or not? In the USA, for example a broker is a member of the National Futures Association with proper registration from the US Commodity Futures Trading Commission. Let us tell you that the National Futures Association is a self regulatory establishment linked to the futures industry in the country. So, the next time when you are looking up a flashy website make sure you’re checking whether the broker has mentioned facts pertaining to regulatory compliance or not. If you’re looking for brokers from USA, then the term NFA should clearly be mentioned in the website.
The regulatory bodies generally differ with different countries. For instance, if it is the NFA in the USA (as already mentioned above) it is Swiss Authorities in Switzerland. So, make sure you are not committing the mistake of undermining the importance of checking regulatory requirements completely.
Choosing a broker without checking its customer support
The Foreign Exchange Market operates 24 hours a day. As such, brokers should offer 24-hour customer service in accordance as well. You should ideally be able to speak to a live person rather than being greeted by an auto attendant. The latter mostly turns out to be waste of time and utterly irritating. So, make sure you’re zeroing in on a choice in accordance. Don’t believe a broker that says that you will not be able to find any broker in the market that provides you 24-hour facility.
The trading platform offered by your broker should be backed by a number of features including customization, great analysis tools and clearly displayed “buy” and “sell” buttons.
Make sure you’re avoiding the aforementioned mistakes in order to secure the best of trading experience.