How to Choose a Good Forex Broker

If you are looking for a good Forex Broker, however do not know where to start, then this post is for you. There a number a aspects many should look for when deciding what Forex Broker to use, some of these so important that they could cost you money.

Let’s begin.

Below are five things you should look for before considering a Forex Broker.

1. Make sure the Forex Broker is regulated where you are trading, this is simple yet when new can be overlooked. Regulation helps reduce the risk of using a broker as a custodial for holding funds while trading. While some may argue, a non regulated broker can be fine still which is true, with so many brokers out there it is better to choose a broker that is regulated, that way it at least let’s you know that audits and checks are being made by the country or countries regulators to ensure funds of clients are more likely safe. Be aware that even if a Forex Broker is regulated it does not guarantee that the Broker is 100% safe, just that it is more safe than a unregulated broker and other factors should be considered as well to determine which broker to use.
2. Make sure the broker has a lot of good reviews and feedback. It is okay for some reviews to be negative as sometimes people post fake negative reviews, however if overwhelmingly negative it is best to play it and avoid that broker. Look at reputable review websites to determine what is a good broker or not. In the future I am planning on adding a review section to this website in order for people to leave feedback and reviews of brokers. Stay tuned for that.
3. Make sure the broker has been operating for more than 3 years, the longer the better in my opinion as that indicates a quality broker, while a new broker could be good, brokers that have been operating for a long time obviously indicates that the broker has a longer term reputation or working with traders. That is a good way of looking at it , a good Forex Broker is a partnership between you, the broker and the liquidity partners providing leverage ( margin ) to trade the markets.
4. Fast deposits and fast withdrawals is more of a personal preference, any broker holding funds for longer than a couple of days for withdrawals is to be suspicious of. This is 2024 and instant withdrawals or near instant withdrawals should be the standard, always check terms on withdrawing and try to avoid brokers that delay withdrawals, this is a red flag.
5. Lastly, spreads should be low and in line with your requirements, a high liquidity broker will offer low spreads which is an important part of making money from Forex trading, brokers offering high spreads may indicate what I refer to as a middle man broker, this is a broker that is getting liquidity from another broker, these types of brokers are best avoided as well.

ICMarkets is a good example of the type of broker that fits all these standards, a broker that is regulated, offers low spreads, fast deposits and withdrawals, has been operating for more than 10 years with plenty of liquidity.

Of course you need to make your own choices when deciding which broker best suits you, however hoping this guide at least helps you make the right decision that suits you and your situation.