If you are looking for a way to invest your money, Foreign Exchange, referred to in short as Forex is a good option considering the returns that it has served investors in last decade. However, the role of broker in forex for a newbie is very crucial. Although a good broker is equally important for a well settled forex investor, the importance magnifies many more times for a new forex investor. This makes the task of scalping forex broker an important one.
The broker helps you settle down in this trade and also helps with his important and critical inputs during tough times. So, the broker you are going to choose has to be the best one available in the market. Let us have a look at some things which you should pay attention to while scalping forex broker.
1. Security with The Forex Broker
You will never want your hard-earned money to flow down the drain as an outcome of a fraudulent broker running away with it. The security of your money lies in your own hand. Before choosing a broker, you will have to make sure he is a legitimate one by doing a thorough background check.
Checking the credibility of the broker is no more a difficult task ever since the advent of internet. There is a regulatory body for each country, which mentions the name of all registered brokers on its website. So, all you need to do is go to the website of the regulatory body and find whether then name of the broker you are thinking to select exists on the list or not. If the name exists, you are on the right path but if it does not, make sure you reject the broker then and there. So, checking credibility of the broker should be first and foremost step in the process of scalping forex broker.
2. Transaction Costs Charged
Good things do come with a price and no matter whichever broker you choose, you will have to pay either spread or a commission for the trade. Whichever currency you are trading in, transaction cost will always be charged. So, look for a trader who charges less as lesser you pay for your trades, the more you have at your disposal to spend.
However, when you come across a situation where a little more transaction cost can provide you with a better and more secure, accept the higher rates and go for the more secure trader. After all, security of the money is most important even if it comes at a little higher cost.
3. Limit on Deposit and Withdrawal of Funds
The inflow and outflow of funds should be a smooth process. The foreign exchange broker should allow easy and smooth process for deposit and withdrawal of funds. What is the benefit of investing if you are not able to withdraw your profits while you are in need of money? After all, it is one of the major reasons why people invest. So, while scalping forex trader, look for the smoothness of the process of withdrawal, as well as process of deposit. If you find a particular trader has history of not letting investors withdraw their profit, you should understand it is not the forex trader you are looking for.
4. Customer Service of The Broker
Nobody is capable of delivering things perfectly to you, thus making customer service an important aspect while looking for good forex broker. The brokers are susceptible to commit mistakes but if they correct their mistakes instantaneously, then that is the broker you are looking for. Check their record of customer service and how quick they respond to customers.
5. Trading Platform of The Broker
All the transactions are done on the trading platform, making it a vital cog in the wheel of any broker. While scalping forex broker, you should look for one who’s trading platform is simple, easy to access and fast. A complex trading platform needs time to adjust, thus making your job tough.
6. Speed of Execution of Orders
The rates of currencies are dynamic, changing almost every second. If the orders are not executed at fast speed, this may lead to losses. An order should be executed at a price which is very close to the price shown on screen when the order was done. So, check the execution speed using demo accounts.
Forex trading is a good option to invest your hard earned money but considering the risks associated, you should keep the above points in mind before executing an order.