Forex trading, indeed, can be a viable source of income, but only if you know how to do things right. Once you’ve equipped yourself with a proper Forex trading education, the next step to take is to find the Forex broker where you’d put your money in. As we always say, careful considerations are needed. Remember, trading in the Forex market is not a joke. The market can be unforgiving, and you may lose everything in just the first few months. Now trading can be even more complicated if you’re with the wrong broker.
If you’re a resident of the United Kingdom looking to try your luck in this venture, but is having a difficult time deciding where to trade Forex, this blog is for you! We’re going to share with you some useful tips on how to separate good brokers from the bad ones.
It only takes common sense to know that the security of your funds should be your utmost priority. It’s easy for UK-based Forex brokers to say that they provide a high-level of security. You see, it’s easier said than done. The legitimacy of a Forex broker is very important, so it’s your responsibility to conduct some background check. No one will do this for you!
We’ve said this over and over again – the Forex market is a market where fraud also exists. This is why regulation is very much important. Luckily, it’s become much easier for traders to check the legitimacy of online Forex brokers these days. Most brokers, if not all, upload all of their legal documents to their websites to ensure transparency.
In the UK, the Financial Conduct Authority oversees the operations of Forex companies. The FCA ensures the overall credibility of the country’s Forex market to protect the public. It would be advisable to associate yourself with a broker regulated by the FCA for the safety of your funds.
A Forex broker with slow execution of trades can get you nowhere. If you want to succeed trading in the Forex market, the broker of your choice should be able to execute your trades in a timely manner. Brokers today have given utmost importance to this area to entice more clients.
Remember that the market can be too unpredictable sometimes. There are times when price movements are too fast that your trading account gets burned. You can act fast, but this is useless if your broker’s execution is too slow.
Costs and Fees
Forex trading involves fees. As we’ve discussed in our previous blog, the money that goes into Forex brokers’ pockets is called spread. Now when looking for a broker, you’d want to spend less on spread or commission.
A lot of Forex companies today promise affordable trading conditions to lure more clients. Some brokers offer spreads as low as 0.0 pips, and commission-free deposit or withdrawal. Yes, you can benefit from such offers, especially if you’re a beginner. However, you have to be sure that this doesn’t impact the services they offer. Some brokers out there offer considerably low trading costs, but the quality of their service is underwhelming. Luckily for you, there are UK-regulated brokers that provide high quality service at a reasonable price.
Withdrawal of Funds
Depositing money into a trading account is usually a hassle-free process. Forex brokers have made it very much easier to cash in money through with a wide selection of deposit methods. Forex traders can deposit in their broker via credit/debit cards, digital wallets such as Skrill and Neteller, and even cryptocurrencies.
As mentioned, funding your account with money is easy. But taking money out of it could be painful and torturous. If you’ve been around the Forex market long enough, you’ve probably heard stories of traders having a difficult time withdrawing funds from their accounts. Withdrawal issues are the last thing you’d want to face in your trading career.
A good broker will allow you to withdraw funds from your trading account without any problems. It’s your money after all, they have no right to hold them without any valid reasons. Remember that Forex companies are only responsible for executing your traders, nothing more.