Trusted Forex Brokers – How To Identify

If you are planning to start forex trading, the first and foremost thing that you should do is to identify a few trusted forex brokers so that you can evaluate each one of them and then decide to work with the broker who best meets your needs. Generally, beginners identify the right forex broker through trial and error method which may sometimes prove to be very costly. In this article, we will look at some of the aspects that you must take into account in order to identify a trusted forex broker. We will also include the names of some of the trusted forex brokers that we recommend. If you follow some of the tips given in this article, you will not only save time but also avoid errors.

trusted forex brokersVerify the Registration Claims of the Broker

It is absolutely important to verify as to whether the forex broker that you are planning to work with is registered with any regulatory agency. You should never trust a broker who claims to have a legitimate business prior to checking their registration. You can also definitely check with the regulatory agency in order to ascertain the credibility and claims of the broker. Some of the regulatory agencies around the world are as follows:

• U.K.’s Financial Services Authority
• France’s Financial Markets Authority
• Germany’s Federal Financial Supervisory Authority
• Federal Banking Commission, Switzerland
• ASIC of Australia
• U.S.A.’s National Futures Association and Commodity Futures Trading Commission

Verify the Deposit and Withdrawal Procedures Specified by the Broker

Trusted forex brokers always ensure that the deposit and withdrawal mechanisms are simple as well as convenient for traders to understand and operate. You are investing your hard earned money and, therefore, you must be in a position to withdraw money whenever you want. In order to avoid encountering unpleasant situations later on, it is of utmost importance that you check the deposit options offered by the broker and read the withdrawal policy carefully before making a final decision.

As far as deposits are concerned, you can consider a broker who agrees for an initial deposit of $100 to $300. If a broker is asking for a minimum deposit of $10,000 to start forex trading, then you must exercise caution. Similarly, if you find that a couple of points in the broker’s withdrawal policy might cause problems to you later on, it is better not to consider that broker.

Determine the Commissions Charged by the Broker

Brokers generally charge a commission on each and every trade carried out by you on the platform. The commission charged by each broker is different and it is up to you to look for a broker who offers the lowest commission on transactions. Of course, you have to strike balance between broker commission and security. This is because some of the brokers who offer the lowest commissions may not provide the required protection for traders.

Ascertain Whether the Trader Allows Enrolling of Traders from Your Country

Some of the forex brokers may not allow traders from certain countries to open an account and work on their platforms. For example, a trusted broker in the U.K. may not allow traders from the U.S. to open accounts on their platforms. It is, therefore, very important that you ensure that the forex broker you are planning to work with allows traders from your country to open accounts.

Checkout the Broker’s Trading Platform

Trusted forex brokers always make sure that the trading platform they provide is user friendly and also include easy-to-understand training material. A good platform will also have all the features that will enable you to execute your orders fast without any hassles. It is a good idea to have demo accounts with many brokers so that you can personally evaluate the performance of each platform.

Verify the Track Record of the Broker

You should not get carried away by the glossy sales page that the broker provides. You must check online reviews, visit forums such as Forex Peace Army and BabyPips and make use of other resources to conduct a thorough background check on the broker.

Ensure that the Broker Offers Efficient Customer Service Support

Forex trades are conducted for 24 hours a day and hence the broker should provide you support round the clock. Trusted forex brokers always respond immediately to provide you with the required service.

Trusted Forex Brokers Recommended by Us

Alpari UK

best forex broker Alpari UK

Year of establishment: 1998
Headquarters: London, UK
Traders accepted: U.S. as well as worldwide clients accepted
Regulated: Yes, by FCA UK
Minimum deposit: $200
Type of broker: Electronic Communication Network (ECN)
Payment options: Accepts Wire Transfer, Skrill Moneybookers, Neteller and Credit Cards
Trading platforms: MetaTrader for desktops, laptops and mobiles; web-based Alpari Direct

Detail Review Alpari UK

FXCM (UK)

Year of establishment: 1999
Traders accepted: Clients from the U.S. as well as around the world are accepted
Regulated: Yes, by Financial Services Authority
Minimum deposit: $50
Payment options: Accepts Wire Transfer, Paper Check and Credit Card
Trading platforms: MetaTrader, Trading Station, Active Trader, Mirror Trader

Pepperstone

Year of establishment: 2010
Headquarters: Melbourne, Australia
Traders accepted: U.S. as well as worldwide clients accepted
Regulated: Yes, by Australian Securities and Investment Commission
Type of broker: Electronic Communication Network (ECN)
Minimum deposit: $200
Payment options: Credit/debit cards, WebMoney, Moneybookers, Wire transfer, Local Bank Transfer, Broker to Broker
Trading platforms: MetaTrader 4, MetaTrader 5, Physical FX, MAM/PAMM, FIX API and Webtrader; clients can access MetaTrader 4 platform through iPhone/Android/iPad or Tablet

Summarizing, you must spend sufficient time conducting extensive research and evaluate some of the trusted forex brokers and then decide to work with one who offers the best features to you.

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