The rise of the internet over the past two decades has made the investment world increasingly accessible to ordinary people.
No longer is trading the reserve of the rich and the successful; now, it’s open to everyone. Forex, in particular, has proved to have mass appeal. Flexible, with a low entry threshold, everyone from housewives to CEOs to students are trading.
Success, however, does not come easily. It has to be built piece by piece, and there’s no better place to start than with the right Forex broker.
To help you out, here’s how to find the best brokerage firm for you in just three easy steps…
Step One: Shortlist Brokers That Meet Your Basic Requirements
The first step in finding a suitable broker is simply to make a shortlist of those who meet your basic needs i.e. those offering your currency pair/s, which are within budget and provide a suitable service.
For many novices and inexperienced investors, for example, this will automatically rule out any execution-only brokers, as these will be too hands off, and restrict them to advisory or discretionary services.
It’s incredibly important to ensure that you’ll be getting the support you need without spending more than you have, or else you run the risk of seriously compromising your trading strategy, so make sure that any brokers on your list fit your requirements to the letter.
Step Two: Assess their Customer Service
Once you’ve narrowed things down a little, it’s time to make more in-depth enquiries. Start by carrying out some internet research on each of the brokerage firms that you’re interested in.
A quick Google search could reveal a lot, as could taking a glance at company Twitter feeds and other social media sites. It’s a good idea to make bullet pointed notes of any critique that you stumble across, as these will make it easier to compare and contrast your options.
You’ll also want to speak to the company directly, in order to gauge their telephone manner, helpfulness, and knowledge. Be sure to ask as many questions as you can think of in order to fully evaluate their suitability for you.
Step Three: Evaluate their Trading Platforms
Once you’ve narrowed it down to two or three front-runners, you need to assess the platforms that your various brokers can offer you. Most firms, like OANDA, will give you the opportunity to trial a demo account, so be sure to take advantage of this.
Draw up a table to help you focus your assessment, listing any factors relevant to your judgement and filling in the boxes to help you compare them.
Once a clear winner emerges, you’ll know that you’ve found the perfect broker and platform for you.