Starting out as a forex trader for the first time can be intimidating. You not only have to train yourself to avoid risking all your money but also have to find the best broker in Australia to use. While the chances of making real money are high, the same applies to the risk of losing it all. Minimizing or managing risks is one of the fundamental principles to staying in the game as well as make good money out of the same. Choosing the best forex broker in Australia is one paramount ingredient to your success as a forex trader.
Best Forex Broker in Australia – Few Points To Keep in Mind
- Dependability and Trust Worthiness
You not only need a broker you can trust with your hard-earned money, but also one that you can depend on. The first step to ensuring the best forex broker in Australia can be trusted is by checking their reputation as well as licensing. Only forex brokers registered by the responsible governing body are legit and trustworthy. Be sure to check the broker’s registration validity and certification before creating an account with them.
- Services Offered
Once the broker’s validity and trustworthiness have been confirmed, check to see what services the broker has to offer. With Forex markets open all day, every day, it would be advisable to identify brokers that operate round the clock. Never go for forex brokers with time restrictions on when trades should occur, as you could be missing out big in the end. Some of the finest brokers in the market today provide ever-available trading platforms with customer support all day long.
You also need to ensure the broker covers all the seven main trading currencies. These are EUR, USD, GBP, JPY, AUD, CAD and CHF. Other services you ought to look out for include technical tools such as live financial trading charts, chart analysis, prices and predictions among others.
- Broker Costs
Since online forex brokers do not charge commissions on their customers, understanding the forex spread the broker uses is the piece of the pie you need to uncover and understand. You don’t want half of your hard-earned earnings being gobbled up in hidden charges and costs. The best way to understand this is by checking how much deposit you will be required to fund your account with the broker. Even the best forex broker in Australia requires a minimum of $250 or even less as initial deposit.
- Lot Size and Margins
Margins (also known as deposits) vary from one broker to the other. The lower the leverage, the greater the leverage and chance to make even greater profits or equivalent losses. It also gives you an opportunity to cut down on risks, as you never have to push more money into your account unless you feel necessary.
The lot size also matters a lot in forex trading. While 100,000 trading units are considered standard, some companies offer the privilege to set a preferred lot size. This gives you the power to control how much to invest in as a way to cut losses.
The other most important factor to consider is the quality of customer service. You need a forex broker offering a 24/7 responsive customer service as a way of serving clients. Be sure to watch out for these when looking for the best forex broker in Australia.
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