<WikiFX Malaysia Original – Editor: Fion>
Protecting your capital is the number 1 golden rule in trading. However, getting on board with a wrong broker could trip you up before the game even begins.
When you are looking to trade Forex, the first thing to pay attention to is to identify and get yourself a credible broker. The cases of forex broker scams are staggering with many unscrupulous brokers out there. In order to protect our trading capital, we must perform our own due diligence in choosing the right broker.
WikiFX is a global forex broker regulatory inquiry website and we are specialised in filtering out unqualified brokers. Here are a few tips that we have compiled to make things easier for you:
1) The authenticity of the regulatory license held
At present, the most important and strictest regulatory licenses in the world are FCA in the UK, CFTC in the US, ASIC in Australia, FSA in Japan, and so on. In addition to these licenses, in order to provide investors with higher leverage, brokerage firms also hold licenses such as BVI, CySEC, and CIMA. If a brokerage firm holds one or more regulatory licenses, it means that it is more secure relatively.
2) Deposit / withdrawal processes
Generally, Forex brokerage firms various channels for deposits and withdrawals, such as credit cards, bank wire transfers, and PayPal. Traders should consider brokers that offer timely processing for both deposits and withdrawals that is within 1-3 working days.
It is advisable to deposit a small amount of money first and try withdrawing it to see how the process is when one engages a new broker. WikiFX has come across many brokers that deliberately make it hard for traders to withdraw their cash and this type of broker is deemed unsafe by us.
Another thing to check is whether there are any handling fees for each deposit and withdrawal transaction as well as an account inactivity fee. Some unethical brokers play by the loophole by not stating these fees clearly.
3) Transaction costs
Direct brokers make money through spreads, thus an investor should choose a broker that offers a small fixed spread to avoid the big changes in spreads when market volatility increases. The smaller the spread, the lower it is ones trading cost. However, do note that there are brokers that use low spreads as a marketing strategy to attract new clients but they are not necessarily safe nor reliable brokers.
4) Responsive customer service team
Find a broker that has customer representatives who are available at all times and are able to communicate in your choice of language. Most brokers right now offer 24/5 live chats for the convenience of their clients. You want to engage a broker that is readily available to solve your problems when a complicated situation arises.
5) Types of accounts and instruments
The majority of Forex brokers offer several account types coupled with different leverage levels and minimum deposit required to open a new account. The available trading instruments may also differ for each account type. Traders should choose their trading accounts and brokers like choosing a pair of comfortable shoes – they have to suit your preferences, fit your needs as well as be able to take you far in the long run.
6) User experience and reviews
What is more transparent and honest than reviews from real users who had experience dealing with a certain brokerage firm？ On WikiFXs Exposure page https://exposure.wikifx.com/en/revelation.html, you can catch a glimpse of the unfiltered comments from users of different brokerage firms and match it with the corresponding information that we provide regarding the broker.
Below is a real case study derived from WikiFXs Exposure page:
A trading client has filed a complaint against X broker as he could not make a withdrawal and they converted his trading capital to another crypto currency without his permission.
Based on the search result on WikiFXs page, the forex broker in question not only has a low rating, but our site highlighted the red flags of this broker.
To top it off, WikiFX also has a built-in function that makes the work of researching much effortless. By clicking the ‘compared’ button as illustrated in the image above, users can easily compare up to 5 different brokers side by side.
In summary, WikiFX is a one-step platform that strives to provide the most reliable information regarding forex brokers around the globe under a single website and app. We believe that it is always better to be safe than sorry when it comes to taking extra care of your trading capital.
Available for free browsing on www.wikifx.com and also free app download on Google Play and App Store. Start reviewing your broker(s) today in just a few clicks.
<WikiFX Malaysia Original – Editor: Fion>
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