Do not risk your hard-earned money with fake brokers. This quick guide shows you how to choose a forex broker.
To trade forex, stocks, CFDs you need a forex broker.
I am sure you have heard of stories about brokers who trade against you or brokers who make it a living hell to withdraw your profits.
To avoid drama, you should carefully pick a good forex broker because they will be your partner as long as you dabble in the currency markets.
How to choose a good forex broker.
There are hundreds of brokers.
But to succeed, you need a reliable and trusted forex broker.
In summary, here are the seven things to look for in a forex broker.
- International and Local Regulation
- Support Fast Deposits and withdrawal
- Low Trading costs
- Reliable Platform and trading tools
- Fast Trade execution
- Trader Education
- Great Customer Support.
1. Choose a forex broker with International and Local Regulation
As a trader, your deposits must be safe.
Only regulated brokers can give that assurance.
They are required to meet stringent conditions before they are licensed.
This protects your money.
If you can get a forex broker regulated in your local country, the better.
2. Choose a forex broker who Supports Fast Deposits and withdrawal
Once you are sure that your money is secure, you want to know how fast and conveniently you can deposit and withdraw your money.
Almost all these broker have the standard deposit and withdraw methods – VISA, Wire transfer – but those that go the extra mile to provide local withdrawal methods like Mobile Money.
3. Choose a forex broker with Low Trading costs
Spreads and commissions can often determine how profitable you are.
Trade with a broker who provides the tightest spreads and lowest commissions.
4. Choose a forex broker with a Reliable Platform and trading tools
Always trade with a broker who provides the platforms and tools you are comfortable trading with.
The forex brokers we recommend have Metatrader 4 as the standard.
Others have Metatrader 5, and ICMmarkets has cTrader.
They all have web traders and apps for mobile trading.
5. Choose a forex broker with Fast Trade execution
It shouldn’t take ages to enter or get out of a trade, especially for a scalper.
You want to get in when you click buy or sell and get out when you click close.
It’s got to be fast—instant fast.
You should also keep in mind that your gadgets – computer, laptop, phone, internet connection – all play a big part in determining your trade execution speeds.
6. Choose a forex broker who provides good Trader Education
If you are not learning, you are not growing.
Any forex broker you choose should have a solid educational base in place.
This can be in form of articles and trading guides or through webinars.
You will never learn enough in this business.
7. Choose a forex broker with Great Customer Support.
It rare. But, once in a while, you will need the help of the guys behind your computer.
Hasn’t a deposit gone through? Can’t log in? Can’t trade?
Anything happens; a good broker like your partner should be a call away, a chat away, or an email away with the help you need to execute your trades.
Reviews of the Best Forex Brokers to Trade with.
- XM – Best forex broker with no deposit bonus
- Exness – Best forex broker with instant withdrawal
- ForexTime (FXTM) – Best local funding forex broker.
- TickMill – Best tight spreads and commissions forex broker.
- HotForex – Best 100% deposit bonus forex broker
- ICMarkets – The best ECN, PayPal and Multi-platform Broker
Documents you need to verify a forex trading account.
Every trader is required to verify their account to comply with Anti Money Laundering regulation.
You need these documents to verify your trading account.
Proof of Legal Identity: Government-issued ID, Driver’s License, Passport, etc.
Proof of Address: Government-issued residential registration, reoccurring statements to the address – Water bill, Electricity bill, Tax bill, Tax clearance certificate, and Bank statements.
Note that your proof of address must include your actual address – plot number, street, house number.
It is hard to get documents with an address if you are renting.
But, here is a hack, go to your ABSA branch and request a bank statement, ask them to add the residential address you used when opening the bank account to the bank statement.
That is the simplest way to get a document with proof of address in Uganda if you don’t own a house.
If that is not simple for you, ForexTime (FXTM) – allows you to use a third party’s address to verify your account.
Questions and answers to help Choose a forex broker.
Who is a forex broker?
A forex broker is a company that connects retail traders with the interbank system.
How do forex brokers make money?
To connect you to the interbank system, a forex broker charges commissions and spreads.
Which forex broker is the best
Best forex broker for beginners
The best forex broker for beginners is Exness
Next is XM
Which forex broker has the lowest spread
Which forex broker accept PayPal
ICMarkets accepts PayPal
Which forex broker has the best spreads
Which forex broker gives bonus
HotForex gives 100% deposit bonus
XM gives 20% deposit bonus upto $5,000
Which forex broker has Nasdaq
Which forex broker has the tightest spreads
Which forex broker has the best spreads
Which forex broker is best for scalping
Forex broker no deposit bonus
Forex broker with high leverage
Exness has the highest leverage. Unlimited and upto 1:2000
Forex broker with no minimum deposit
Exness has no minimum deposit
Forex broker with low spread and no commission
Forex broker negative balance protection
Forex broker no verification
You can trade and withdraw with Exness for 45 days without verification
Read our forex broker reviews https://thetraderinyou.com/forex-brokers/reviews/ so you can choose a forex broker.
Forex Trading is Risky