Things You Should Know About Your Forex Broker

When it comes to picking an online broker, confusion suddenly spurts. There are several categories that govern the efficiency of a broker. Misconceptions are common when it comes to judging a broker. Some demand unjust commissions, while some demand rates so low that it's misleading. You are essentially viewing brokers through an opaque glass and not everything they do will be visible to you! 

From boastful claims to suspicious profits, here are 4 things you should know about your online broker:

Things You Should Know About Your Forex Broker

1) Regulation and Financial Backing: The first thing you ought to ask your broker is, if he is regulated by a well-established financial agency. In an era of infamous scams and escalating scandals, having a regulated broker serves as a seal of assurance. Additionally, brokerage agencies aren't constructed on a million dollar base; they need to make money just like you do. This is done using spreads - the difference between selling prices and asking prices. It is a good measure to compare and watch the spreads your broker charges and ensuring it is just. 

2) Customer Service Quality: Novice traders often fail to understand the importance of good customer service. Forex trading isn't a one-man show. Both the trader and the broker are essential for a deal. Forex operates round-the-clock and through the week. Traders can only make calls depending on the overlap of time-zones and brokers are responsible for facilitating this irrespective of the trader's region! From Monday to Friday, Forex brokers should offer undivided assistance.

3) Demo Trading Account: A major deciding factor when it comes to picking a online broker is the provision of demo accounts. The first best way to learn trading is by trading on a comfortable trading platform. However, with the volatility of Forex trading markets and the immense risks involved, it is best to learn on a demo account before committing full-time. Demo accounts let traders experiment around, devise trading strategies and see the consequence of their actions - all without any physical, real-time losses. There can be no compromises when it comes to demo accounts and trading platforms.

4) Leverages: Investing a few thousand dollars might seem possible, but how do you work your way around a $10,000+ trade without shelling some capital? To aid traders financially, brokers offer leverages. Leveraging essentially means to borrow a certain amount from the broker for a trade. The positive side is that leveraging allows you to trade huge amounts without leaving a hole in your pocket; the downside is that if you incur a loss, not only do you lose your money; you lose the borrowed amount as well. Always tread carefully while leveraging. 

Forex demands traders to partner up with reliable and trustworthy brokers, the lack of which will brew inefficiency and incapacitate the trader. Hire the best, hire WesternFX! Forex trading in Nepal is as appealing as ever and now is the right time to invest. With our stellar brokerage assisting you throughout, you will notice no hindrance. For availing the services of the best Forex brokers in Nepal, call us today.