It can feel very confusing and complicated when choosing a currency broker. In this list we will therefore go through some simple tips to make it easier for you who are interested in starting with currency trading.
Broker reviews and licenses
A good start when choosing a currency broker is to study the brokers ‘assessments, both among the traders themselves and also the brokers’ licenses. This is very important for finding safe, reliable and legal currency brokers who are following ASICs rules. “ACIC” is Australia’s regulatory body responsible for auditing and issuing forex licenses. ASIC licenses are issued to financial companies that intend to engage in forex operations, provided that they meet certain criterias set by “ASIC”. ASIC’s requirements, include many capital adequacy and fit and proper tests. When choosing currency brokers you can see the licenses as a security. Should your currency broker not live up to ASIC’s requirements, it is possible to contact ACIC and report it.
What are transaction costs?
To maximize your profits, it is important to keep track of the currency brokers’ transaction costs. Traders generally take no commission, but usually earn money from spreads and the differences between the buying and selling prices of the currency (s) you choose to trade with. Therefore, focus on finding serious currency brokers with as low a price as possible. Your choice will of course have a great importance for how high your profits will be.
An important detail to consider when choosing a currency broker is that you look at assets in the form of the capital that the broker can offer their traders. The first thing you can check out is the minimum deposit fee, that is of great importance when choos your currency broker. The higher this amount, the greater the risk of large losses, of course.
Another detail that can be decisive when choosing your currency broker is the Deposit and Payment Methods. Most accept bank transactions and debit cards, but if, for example, you prefer electronic wallets, we recommend that you find out if these options are possible.
What trading platform is offered?
The trading platforms are separated and the range looks different depending on which broker you choose to use. The choice of the platform you will be using is of great importance because it will be your main trading tool and communication channel when engaging in trading activities through the currency broker you selected. Our advice for you is to choose an as user-friendly platform as possible.