FX companies can be overwhelming. Every aspect plays a part in a trader’s success, from trading platforms and customer support services to regulatory compliance requirements.
Aspects such as the bid/ask prices of currency pairs that different brokers offer traders should be compared, along with whether spreads expand and contract depending on market volatility.
Bonuses
Forex companies frequently offer bonuses to draw in new customers and reward existing ones, such as cash bonuses, free trading accounts or items including smartphones or tablets. When selecting a broker it is wiser not solely based on bonuses but to consider other aspects such as low spreads and reasonable withdrawal conditions as a factor in choosing one.
Brokers need not only provide bonuses but also meet regulatory requirements. There are brokers who are prohibited from providing bonuses entirely while others have very restrictive usage terms which make it difficult for traders to maximize the profits from deposit bonuses. Traders are advised to either select a broker with terms tailored specifically to their trading style – or consult their account manager about custom bonus proposals that fit within this context – in order to maximize profitability during trading sessions.
Platforms
The forex is an international marketplace where currencies are bought and sold. Brokers offer various tools that enable traders to make informed investment decisions, including web portals, mobile apps, downloadable software platforms like MetaTrader 4 which offers comprehensive charting capabilities with advanced automation features as well as nine timeframes and 50 built-in indicators.
Brokers typically charge fees for trades made on the foreign exchange market, either an upfront commission payment or embedded within each trade itself known as a spread. Since differing brokers offer differing spread sizes and types it would be wise to shop around before settling with your best choice.
IG provides low spreads (as low as 0.8 pips) on major currency pairs—lower than most U.S.-based brokers—and offers extensive educational resources such as seminars and webinars on trading concepts, with a focus on helping beginners understand the basic framework of the forex market and apply that knowledge to real-life investing situations.
Customer support
When choosing a forex company, customer support should be at the top of a trader’s list. A responsive support team will help traders quickly navigate any bumps in the road and may also provide helpful education and tips for making well-informed investment decisions.
A great broker will offer multiple channels of communication—such as live chat, email and phone—to ensure traders can quickly reach support representatives so they don’t miss out on potential opportunities or experience financial losses. Ideally, brokers should also offer multilingual customer support to cater to traders who speak different languages.
In our test of customer support services for various forex companies, we conducted several scenarios with varying queries. Rijo Varghese from FX Giants was the fastest to respond—taking only 35 seconds to reply to our first query—and she was extremely courteous and polite. FXCH (John) and IC Markets (Dorina) took longer.
Choosing the right broker is a crucial challenge for aspiring traders, so be sure to do your due diligence and make an informed decision.
There are two main ways brokers make money: some charge commissions while others rely on spreads. Brokers’ spreads can also change depending on how the market is doing.
It’s important to choose a broker that meets regulations set in your country. Many brokers must prove they belong to professional organizations that enforce monitoring and supervision standards to keep client funds safe. Examples of this include UK FCA or Cyprus CySec whose certifications are usually listed on their websites.
