The forex market is a global platform that allows you to trade currencies and other commodities. A lot of people are now learning how to use this market to work and earn from the comfort of their homes. The most common form of trading on this market is buying and selling currency pairs. You need to identify a viable platform where you can deposit funds and access these trading tools. There are so many of these platforms online, each promising different experiences and packages. However, only a few provide the best user experience and ease of trading. Here are some of the tips you should use to find the best forex trading platform.
Table of Contents
Broad Asset Class
The platform you choose must have a broad asset class. These assets include forex currency pairs, ETF CFDs, stocks, commodities, indices, and cryptocurrencies among others. Furthermore, consider the number of currency pairs the platform has. Ensure it has the most popular pairs such as EUR/GBP, EUR/USD, and GBP/USD among others. The more it has the better. With a broad asset class, you will be in a position to spread your risk, increasing your chances of making profits and reducing the risk of losses. A diversified market enables you to take advantage of opportunities that arise elsewhere when other areas are not promising.
Demo or Trial Account
Many traders, especially the seasoned ones, overlook the importance of a demo or trial account. However, a demo or trial feature is one aspect that you should never overlook when looking for a good trading platform. Remember, even if you are a seasoned trader, every platform has its rules and tweaks that you have to learn before loading a live account. For those that are new in trading, such a feature is a necessity to learn the dynamics of placing trades and other functionalities. In that case, ensure that the trading platform you select has the trial feature and is loaded with enough trial virtual currency to train or practice with.
Minimum Deposit and Withdrawal Amounts
Some platforms have the tendency of setting very high minimum deposit amounts. It is also such platforms that require you to have a substantial amount to withdraw your profits. You would be safer avoiding such because in most cases, such platforms are frauds. They simply want you to deposit funds, and then prevent you from withdrawing. A good platform should encourage the least possible amount to begin trading with, and also allow you to withdraw your money however little at any time. Ensure you check this before going live with any amount to save yourself from online frauds.
Customer Support
Customer support is another vital aspect that every good trading platform should have. At some point during trading, glitches may arise that require you to contact customer support for assistance. Some of those glitches if not solved quickly can lead to serious losses. That is why it is of necessity that there are various ways in which you can quickly contact the platform. Check if there is 24-hour chat and phone support and if this support is available in multiple languages. It should also be easy to access this support and not be put through answering machines. Ensure you check all that before depositing any money.
Regulatory Compliance
A lot of unsuspecting new traders have lost their money to unscrupulous trading platforms. Before you invest in a live platform, take your time to check the company’s reputation. Most reputable platforms are members of the National Futures Association (NFA) and are also registered with the Commodity Futures Trading Commission (CFTC). The former is a self-regulatory body for futures and commodities while the latter oversees the trading of options and futures in the United States (U.S). Avoid the temptation of getting attracted to bonuses and discounts or flashy websites. No one can give you free money online. Ensure you only work with a broker that is regulated for the safety of your investments.
Ease of Deposit and Withdrawal
There are various ways in which you can deposit and withdraw from a trading platform. Each platform has its preferred methods of enabling these activities. Some of the ways in which you can do so include via credit cards, wire transfer, and via online money transfer agencies. Check the available options that a broker allows and see whether they are convenient with you in your jurisdiction. The easier it is to deposit and withdraw the better. Avoid those that claim to take more than 72 hours for your funds to reflect on either side.
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