What to know about Forex brokers as a Total Beginner?
Find out what should you know about Forex brokers as a total beginner in this profitable industry. Learn from more experienced professionals!
15:40 22 April 2022
You have just stepped into foreign exchange trading, and you are excited to find out as much as you can about it? Suppose you’ve heard of the term “Forex broker” and are eager to get all the information you need about it?
Since brokerage companies are of significant importance to achieving great success in the Forex market, it’s no surprise that you want to learn more about Forex brokers in general.
We’re here to help you gather all the essential data about brokerage companies, why they are so important, and what you should pay attention to while choosing a broker. Let’s start with the basic definition of a Forex broker, shall we?
A Forex broker - what is it exactly?
First of all, the term “Forex” refers to the acronym of two different words “, foreign” and “exchange”. By its core definition, a Forex broker is a financial service company that allows traders easy access to available platforms for selling and buying foreign currencies.
They are also famous for their other names, such as Retail brokers or Currency trading brokers. Buying and selling currencies are always in currency pairs such as EUR/USD or GBP/USD. Many Forex brokers allow their customers to trade in other currencies, including those of emerging markets.
With high quality and trustworthy Forex brokers, such as Exness, for example, all traders can be assured that buying and selling foreign currencies will be 100% safe and effortless.
Why is the regulation of a broker essential?
If you wondered why everybody in Forex is talking about the importance of Forex broker regulations, the reason is straightforward. The internet is filled with an array of unregulated brokers, of which a good majority are fraudulent and may harm traders in one way or another.
Regulation of a broker is essential because it provides a specific warranty that everything is 100% fine and secure from any potential fraud or scam. Many unregulated brokers are often scams and may harm you negatively, such as stealing your personal information or bank/credit card information. For that reason, you must choose regulated brokers by trustworthy regulators such as CFTC and NFA if in the USA or other European regulators that differ from one country to another.
Is it essential to read reviews and brokerage forums?
What is also bothering many beginners in Forex trading while choosing a high-quality broker is whether it is crucial to read reviews and brokerage forums. The shortest answer is yes; reviews will provide you with the most precise information about a preferred broker. You will know its address, trading platforms, languages, broker status, country, broker type, bonuses, and much more.
On the other hand, you will find comments from real users and previous and current ones on relevant brokerage forums, which will help you form the bigger picture and get all the first-hand details. Comments by users are often the most objective way to see what you can expect with a particular broker.
In conclusion, we advise beginner traders not to rush while choosing an ideal broker. Do proper research by reading reviews, brokerage forums, getting to know whether a broker is regulated or not, does it offers a 24-hour available customer service and educational material, along with all the necessary account features you prefer, etc.
Once you’ve checked all of the above with a Forex broker of your choice, you are ready to pick one. Start with a demo account until you gain the necessary knowledge and experience in trading. Only a trustworthy and regulated broker of the highest quality will help you become a true professional! Choose wisely, and good luck!