The pandemic has been a boon to online trading providers. Brokers saw a surge of interest as millions of people turned to remote methods of work. The global currency market is now accessible to anyone with an internet-connected device, a registered account and some capital. Entry is cheaper than ever — some companies allow you to begin with just $10. However, not every firm in this industry is legit.
Regulation of Forex trading varies from country to country. At the same time, some tips are universal. If you are wondering how to choose forex broker in Indonesia or another location, here are the top five criteria.
1) It Must Be Licensed
Any broker without a license is illicit, but the company does not have to be registered in your jurisdiction. Authorization from entities like the FCA in the United Kingdom, the FSCA in South Africa, or the CySEC in Cyprus allows firms to work in different parts of the world. In the USA, providers have to comply with some of the strictest requirements. All the brokers must be registered and licensed in the country.
2) It Must Have a Positive Reputation
To see if a company lives up to expectations, search for user feedback and professional reviews. The fact that feedback may be fake is common knowledge. Look for a balanced mix of reviews with four and five stars, and pay attention to any issues mentioned in more than one comment.
3) It Must Offer State-of-the-Art Software
The quality of software and stability of the tech environment are crucial for your results. A company does not have to develop its own systems, as there are so many generic solutions. Whether it is MetaTrader 4 or a proprietary app, the interface should be easy to navigate. You do not want to waste time searching for the necessary button in the midst of a market frenzy.
4) It Must Have a Broad Choice of Instruments
All traders diversify their portfolios sooner or later. This is essential for long-term success. Make sure you will be able to engage more markets when the time comes. Top providers offer a wide choice of currencies, metals, commodities, cryptocurrencies, etc. Many instruments are traded via CFDs, which means you do not have to own the underlying assets.
5) It Must Have Efficient Customer Service
Trading takes place 24 hours per day five full days a week. You need instant access to assistance at all times. Reputable brands have multilingual call centers. They provide support by email and live chat. It may also be available through the mobile app.
Forex brokers must be licensed and operate in specific jurisdictions based on their status. The reputation, customer support, and quality of digital tools are all important. Do your homework and avoid rash decisions to protect your capital.