In the last few years, trading forex has become a popular way of making money from home. Traders can access the forex market from anywhere in the world through a reliable online forex trading platform. All they need is a computer and internet access.
Regardless of the currency pairs you wish to trade, finding a reliable online forex trading platform is an important aspect of successful online forex trading. With thousands of options online, choosing the right one can be a challenge, especially for newbie traders.
Here is what to look for in the best online forex trading platforms.
Licensing and regulations
Licensing and compliance with regulatory authorities is the first and most important thing to look for when finding the right platform to trade forex online. A reliable online trading platform, like forex MetaTrader 4, should be licensed and regulated by the forex regulatory commission.
To know whether a platform is registered, check for a regulations badge and certification usually displayed on the trading website or check with your country’s regulatory authorities.
Examples of regulatory bodies include the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) for trading sites in the USA, Swiss Financial Market Supervisory Authority (FINMA), Cyprus Securities and Exchange Commission (CySEC), and Australian Securities and Investment Commission.
Checking that a platform is regulated and licensed is one of the best ways to protect your investment and portfolio.
The trading platform technology
It is always ideal to find a trading platform that is easy to use while offering the latest trading technology. If a platform’s user interface has a complicated navigation tool, you will have a hard time trading on the platform, especially if you are a newbie.
The best trading software should be easy to use and fast. It should also have the necessary tools within reach. This ensures you can enjoy flexibility when placing forex trade orders on a secure and reliable site.
Leverage and margins
Before placing an order on an online forex platform, always consider the margin requirements.
The margin is the deposit required to keep a trading position open. It is a part of your account balance that has been set aside. To brokers, margins are a form of security in case your account loses money in s trade.
If a trader is losing money, a broker may ask for an additional deposit or close any open trading positions as a way of mitigating further losses to protect the margin. When finding a trading platform, ask about the margin requirements.
For leverage, you should only trade at a level that matches your trading skills and needs. Different trading brokers online offer different leverage margins that start from 100:1 to as high as 400:1.
While it is appealing and tempting to apply high leverage, it is one of the easiest ways to wipe your account. Therefore, never use high leverage ratios if you are not confident about your trading methods. This is especially important to remember for newbies.
Slippage and spreads
Consider the spreads offered by a trading platform. Brokers get their commissions from spreads. Therefore, spreads can vary from one broker to another, ranging from fixed spreads to variable spreads.
Some brokers rate their spreads based on the size of an account. Always go for a spread that favors your trading options. In addition, considering the slippage offer on a platform can make it easier to preserve your account balance.
Customer service and support
Whether you are an experienced trader or a novice, it is best to register on a forex trading platform with a reliable customer support service. This ensures any issues you face on the trading platform or your account are handled as fast as they arise.
The best online forex platform should have 24/7 technical and general client support availability.
Withdrawal and deposit policies
Consider the funding methods accepted by a trading platform and the fees involved. Check if a broker has an amount limit when it comes to the minimum deposit or withdrawal you can make.
The best forex trading platform should allow you to withdraw and deposit into your account safely and quickly.