Picking a forex broker can be daunting, particularly for traders new to the game. There are countless factors, from fees and spreads to account types and tradeable assets. And then there are the more intangible elements, like customer service and platform functionality.
To make things easier, we’ve compiled a list of the essential methods for picking forex brokers in AU. By following these guidelines, you’ll be sure to find a well-suited broker for your trading needs. Check Saxo for a great selection of brokers.
Consider your trading goals
Before looking at forex brokers, knowing what you want to achieve with your trading is essential. Do you want to make an instantaneous profit, or are you aiming to build long-term wealth? Are you simply trying to generate some extra income?
Your trading goals will determine the type of broker you need. For example, if you’re looking to trade forex for a living, you’ll need a broker that offers high leverage and low spreads. On the other hand, if you’re starting, you might want to choose a broker with lower fees and good customer service.
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Research the fees
Regarding forex brokers, fees can quickly eat into your profits. That’s why it’s essential to research the various fees of different brokers before deciding.
Here are some of the typical fees charged by forex brokers:
- Spreads: The difference between a currency pair’s bid and ask price.
- Commission: A flat fee or a percentage of the trade value is charged per trade.
- Swap fees: A fee charged for holding a position overnight.
- Inactivity fees: A fee charged to traders who don’t meet a minimum trading volume.
Compare account types
Forex brokers offer different account types, each with its benefits and drawbacks. For example, some brokers offer managed accounts, where you hand over the reins to a professional trader. Others offer mini accounts, which are ideal for beginners as they allow you to trade small amounts of money.
To find the best account type for you, consider your trading goals and experience. Beginners, for instance, might want to start with a mini account, while more experienced traders might prefer a managed account.
Consider the tradeable assets
When picking a forex broker, it’s essential to consider the range of tradeable assets on offer. Some brokers only allow you to trade major currency pairs, while others also allow you to trade minor pairs, exotics, and even cryptocurrencies. To find the right broker, consider what assets you’re interested in trading.
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Evaluate customer service
You’ll likely need customer support if you’re new to forex trading. Excellent customer service can differentiate between a profitable trade and a loss if you have queries about your account or need support with a trade.
When evaluating customer service, there are a few things to keep in mind:
- The support quality: Is the support team knowledgeable and helpful?
- The availability of support: Is the support team available 24/7?
- The support channels: Do the brokers offer phone, email, and live chat support?
By considering these factors, you’ll be able to find a forex broker with good customer service.
Test the platform
Most forex brokers offer a trading platform, whether a web-based platform or downloadable software. Before deciding on a broker, it’s essential to test the platform to see if it’s user-friendly and offers all the features you need.
Here are some things to consider in a forex trading platform:
- Ease of use: Is the platform easy to navigate?
- Charting tools: Does the platform have all the necessary charting tools?
- Indicators: Does the platform offer all the indicators you need?
- Newsfeed: Does the platform provide a live newsfeed?
By testing the platform, you’ll be able to determine if it’s the right fit for you.
Read online reviews
One of the best ways to pick a forex broker is to read online reviews. By reading reviews, you’ll get insights from other traders about a broker’s strengths and weaknesses.
There are several things to consider when reading reviews:
- The source of the review: Is the review reputable?
- The tone of the review: Is the review positive or negative?
- The content of the review: Does the review provide valuable insights?
By considering these factors, you’ll be able to find helpful and accurate reviews on what broker is best for you.