Crucial Things to Consider when Choosing a Broker

The trading market has become so competitive that even thinking about having to sift through all the brokerage options can give people a major headache. Yes, you want to trade and of course you want to do it right. This can only happen when you have selected the right broker for fulfilling your trading needs and providing you the opportunity of making profits. Choosing a good broker to trade with can be quite an overwhelming task, especially if you don’t know what to look for. Making the wrong choice can have disastrous consequences because if the broker is not legitimate, it can put your investment at risk.

Similarly, if you opt for a broker that’s more suited to an advanced trader or vice versa, you will find it difficult to trade comfortably. Then how should you choose a broker? In order to make the right decision, there are some crucial things to consider when you are looking at different brokerages. Some of the qualities you should look for in a broker are:

Security

First and foremost, security is an important characteristic of a good broker. Are you going to hand over hundreds of dollars of your hard-earned money to someone who claims to be legitimate? It definitely is not a wise move and you need to be very cautious. Luckily, checking the credibility of a broker is not that difficult. The trustworthy brokers can be distinguished from the fraudulent brokers through their regulatory status.

There are regulatory agencies all around the globe that license and authorize brokers to provide their services in different areas. Some of these agencies include FCA in the UK, ASIC in Australia, BaFIN in Germany, CySEC in Cyprus and SFBC in Switzerland. Good and reliable brokers like HFTrading are regulated by such agencies, making them secure and trustworthy.

Transaction Costs

No matter what kind of financial instrument you decide to trade, you will always have to deal with transaction costs. Every time you enter a trade, there will have to be some sort of payment, either in the form of spread or a commission. Therefore, it is only natural for traders to look for brokers that are the most affordable and can offer them cheap rates. Sometimes, you do have to sacrifice low transactions costs in favor of a regulated and reliable broker. Check the transaction costs charged by the broker if you want tight spreads. It is all about striking a balance between low transaction costs and security.

Deposits and Withdrawals

Good and professional brokerages give their clients the option of depositing and withdrawing their funds in a hassle-free manner. There is really no reason for a broker to make it difficult for traders to withdraw their funds because they are only holding them for facilitating trading. Hence, you shouldn’t have a hard time in withdrawing your profits.

The broker should ideally make the withdrawal process smooth and speedy and this is exactly what great brokers like HFTrading do. However, there are also scam brokerages that make it difficult for their clients to get access to their funds. You should always check the deposit and withdrawal methods offered by a broker, along with their respective policies before making a choice.

Trading Platform

When you are trading online, most of the trading activity happens via their trading platform. This means that their trading platform should be stable and user-friendly. When you are exploring different brokers, you should never forget to take a look at their trading platform. This software also provides trading tools and other features and you should look for one that’s right up your alley. Does it offer easy-to-use charting and technical tools? Do you get access to free newsfeed? Are you able to find all the information you need to trade? All these factors are highly important and should be taken into account.

Execution

It is vital that your broker offers you the best possible prices for trading. The market movements happen within seconds and the broker should be able to offer you speedy execution so you are able to take advantage of the latest trends. This speed can make a big difference because the quicker you execute your trades, the more profitable it will be for you.

Customer service

No broker is perfect and therefore, it is best to choose a broker that you can get in touch with easily whenever you face a problem. The competence of a broker in dealing with account issues or technical problems is just as important as their trading platform or their ability to execute trades. Some brokers tend to be kind and helpful when you are opening an account, but later offer horrible customer support. Don’t forget to check the customer support options before you make your final decision.