How Do I Choose a Broker?Last Updated: February 07, 2020
With so many Forex brokers available, choosing a broker can be a very confusing process. 123Trade can help simplify this process and get you trading faster!
Simplify the Process with 123Trade
123Trade is a sister company of MTI that helps students choose a forex broker. They provide step-by-step assistance in the selection of a great broker and ensure students protect their investments for traders of all levels! This free service also includes some extra bonuses!
How to Reach 123Trade
We've created a list to help point you in the right direction. Below is a list of items to consider if you do not utilize this free service.
1. Regulation Compliance
Regulation compliance is vital research when choosing a broker. An unregulated broker can do what it wants with your money. Avoid any unregulated brokers because they may be a scam. A reputable broker will be registered and moderated by the regulatory agencies of their operating country. Ensure that your broker is a member. Below is a list of the regulatory agencies and their corresponding countries:
- United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
- United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
- Australia: Australian Securities and Investment Commission (ASIC)
- Switzerland: Swiss Federal Banking Commission (SFBC)
- Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
- France: Autorité des Marchés Financiers (AMF)
- Canada: Investment Information Regulatory Organization of Canada (IIROC)
2. Account Details
- Easy, hassle-free withdrawals and deposits
- Transaction cost - Commission and Spreads
- Leverage and Margin - loans from your broker and the amount they set aside to keep your trade open.
- Initial deposit
- Minimum lot size
- Instruments (currency pairs) offered
3. Customer Service
- Inquire about their hours of operations.
- Call them to ensure ease of contact.
- Read online reviews. Are their current clients happy with them?
4. MetaTrader 4 (MT4)
Our charts can connect with most MT4 accounts.
- Ensure you are able to have an MT4 account with them.
- Do they block third party software connections?
- Are they willing to provide their server information?
Most of the big, most popular brokers are already loaded in SmartTrader for easy connection, such as Oanda, Forex.com, AvaTrade, and FXCM.