For those who are new to forex trading, it’s always advisable to gain a better understanding on the basics of trading before you get started. As they say, knowledge is power, but even with this knowledge, you’ll need a top broker as your partner in order to become a successful trader.
But what should those who are new to trading look out for when choosing their first forex broker? Here are 5 important factors to bear in mind:
Trusted and proven
Of course, the whole point of trading is to make a profit. More importantly, you want to be able to withdraw your funds whenever you wish. This means that it’s vital for you to select a broker that is trustworthy and proven. A good start would be joining trading communities or groups on online forums and social media to research what fellow traders have experienced on various trading platforms. Look for a broker that has been around for at least 10 years, is regulated by recognized regulatory authorities, and audited by a reputable accounting firm yearly. It should also segregate its clients’ funds from their own operational funds and hold them in top-tier banks. Lastly, as data theft becomes more widespread, always ensure that the platform you choose employs cutting-edge technology to safeguard your personal and transactional data from leaks and hacks.
A simplified trading experience
Not only does a user-friendly trading system make it easier and more pleasant to use, but it will save you time and effort when navigating the platform. Whether you are placing orders or searching for information, the ideal forex broker will always have an uncomplicated trading system that is simple for beginners to navigate. The top ones will even provide video tutorials, and can be accessed on any device including desktops, mobile phones and tablets.
Deposit & withdraw on demand
The key to success for any trader is being able to quickly capitalize on opportunities, and to withdraw your earnings shortly upon closing a position. After all, this is your money, and you should be entitled to the flexibility of doing what you wish with it. This is why it’s important to choose a broker that offers instant deposits and withdrawals.
Another aspect that contributes greatly to trading success is a term known as “leverage”, or “margin trading”. Leverage allows traders to trade more with less and use market movements to optimize profits. The icing on the cake - these funds borrowed from your broker are interest-free!
Here’s an example, imagine you are buying USD/JPY at a leverage of 1:2000 and your capital outlay is only USD50. This means you’ll be able to trade up to a base currency sum of USD100,000. If USD/JPY runs up by 5 pips, you’ll earn a profit of USD40 at a spread of 1 pip. That would give you USD40 in earnings for just USD50 in investments!
Here’s the perfect example of a forex broker that offers one of the highest leverage of up to 1:2000.
Sometimes, traders might spot a market trend and be compelled to keep their trading positions open overnight – often across several nights. In such cases, most forex brokers will charge traders an overnight fee known as a “swap fee” or “rollover fee”, which is tied to the interest rate differential between the two currencies being traded. However, with a Shariah-compliant broker that offers traders swap-free accounts in Malaysia, you’ll pay zero swap fees when you buy a currency pair and hold your position overnight. Thus, it’s wise to choose a broker that won’t charge fees on any hedged positions for the currency pair that you’re holding overnight.
Free Training & Analytics Tools
The most successful traders are those who are armed with knowledge and expertise. Which makes it a huge bonus if you are trading with a broker that offers free tools and resources to learn and grow as a trader. These include educational articles, proprietary trading-related news, exclusive webinars and seminars, and more. Better yet, brokers that include analytics tools on their trading platform will enable you to nurture your knowledge on the technical aspects of trading. Remember, aside from requiring fundamental analysis, understanding the technical analysis aspect of trading is also vital for success.
World-class customer support
Everyone needs help now and then, but in an industry where every minute could cost you dearly, timely customer support is especially important. As the forex market is a 24-hour international exchange for most of the week, always go with a broker that supports you 24/7.
Find the right partner for your trading journey
You deserve nothing but the very best, which is why you should start trading with the top forex broker for beginners in India. Choose a proven broker that meets the 5 points above, and you can’t go wrong. Trade with confidence with a broker that’s trusted by the trading community here.
Forex Trading involves significant risk to your invested capital. Please read and ensure you fully understand our Risk Disclosure