Forex trading or FX trading in short, is one of the most popular financial investments that people are getting into these days. It’s no surprise really, considering the relatively low investment requirement and the high profit potential. Also, the convenience of doing all your trading online makes it doubly attractive compared to traditional trading.
It is always important that you choose the most suited trading platform for yourself before you start trading with real money. Forex trading or FX trading biggest financial market in the world with an average daily volume of over $5 trillion, meaning it’s much bigger than the stock and crypto markets combined.
Once you have learned the basics, it is the perfect time to find the trading platform that meets all your needs and we will give you a few insights into the key factors when choosing the platform.
Key Factors When Choosing The Best Trading Platform
Simple to use and user friendly
First of all, you will need to make sure the trading platform is simple and user-friendly, otherwise, they can be a little overwhelming for beginner traders. Once you get familiar with everything you may consider switching the platform to a more advanced one, but for now, you will want the one that is easier to use and understand.
Most certainly you won’t want to lose precious time trying to navigate through a complicated trading platform when you can actually use the one with the most intuitive layout.
Speed and performance
Speed is crucial in the world of online trading. Entering a trade a few seconds too slow because of a lagging platform could make the difference between a winning or a losing trade. For this reason you need to use a trading platform that is reputable for its fast execution.
Transparent with commissions and fees
Some brokers may have hidden commissions and fees. They seem to promote having very low commissions or no commissions at all, while no commissions are indeed charge, they may have a bigger spread than the other brokers and so on. Make sure you read everything when it comes to fees so you don’t end up paying more than you were expecting.
Offers competitive spreads and swaps
If you are a long-term trader it is crucial that the broker offers low spreads and swaps.You need a broker with high positive and low negative swaps.
Why are spreads and swaps important?
Let’s imagine 2 cases:
Case 1: Broker 1 has a negative swap of 0.6 pips when selling the EUR/USD. You open a SELL on EUR/USD with 1 lot and you hold it open for 10 days and the broker gives you a negative swap of 0.6 pips per day. After 10 days you close the trade with a 10 pip profit, but you have to pay 6 pips only for swap commissions and at the end, you will only make 4 pips.
Case 2: Broker 2 has a positive swap of 0.1 pips when selling the EUR/USD.
You open the same SELL trade on EUR/USD with 1 lot. After 10 days you close it in 10 pips profit and the broker also gives you 1 pip profit because of positive swap.In the end, you will have 11 pips total profit which is 175% more than with broker 1!
Easy deposit and withdrawal options
The best brokers offer multiple options for both deposits and withdrawals. Make sure the broker always has the easiest and most convenient options. It’s considered the fastest way to deposit using a credit card like VISA or MasterCard for small deposits ranging anywhere from $100 to $5,000. For larger deposits, it’s better to use bank transfers as the fees get lower.
Small initial deposits
If you are going to test the platform, it’s best to test it with the lowest amounts possible. Nowadays there are many forex brokers that let you open an account with small amounts that can be as low as $50 or $100.
Some brokers are even offering micro accounts which can be credited with only $5.This could be a very good option to test a platform before deciding whether you are going to start trading bigger accounts with them.
It is licensed and regulated by strong regulator entities
Before you are giving any of your money to these platforms you have to make sure they have strong regulations like CySEC, ASIC, MiFID, or IFSC. A regulated broker is the safest way to go and you will always know your funds are always safe.
Has good customer support
In case of any problems, it is very important that you are able to quickly get in touch with a real customer support agent. Most reputable brokers are offering live support which is operated by real humans that are always ready to address your needs whether it is through a call, email, or live chat.
Evolution FX is here in order to help our readers to find and choose the most suitable brokers to work with. We make sure all our recommended brokers are regulated by the strictest regulatory authorities. You can always check our brokers reviews pages in order to find the best broker for you.