Investing in currencies on the international Forex market requires the investor – called a trader – to cooperate with a broker of their choice.
They can choose from Polish and foreign brokers, offering various types of trading platforms and different financial conditions for opening and keeping an investment account. How to choose the best Forex broker for you?
Licensed broker under supervision
Basically, for the matter of safety, investors are required to work with Forex brokers that are licensed for their business and supervised by the relevant regulatory authorities. For example, in Poland, each Forex broker rendering services to domestic and foreign clients must be entered on the list of institutions licensed by the Polish Financial Supervision Authority. If you cannot find your broker on that list, it is possible that they operate illegally.
You can also take advantage of the offer of foreign Forex brokers, who should also have the appropriate license and be under the control of financial supervision or similar institutions.
Cooperating with a broker – how much does it cost?
Most investors who start working with a Forex broker find the costs associated with opening and keeping an investment account very important. The overall costs are shaped by brokerage spreads, fees, and commissions charged for executing buy and sell orders for selected currency pairs on behalf of investors.
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However, working only with the cheapest brokers on the market is not necessarily a good idea. Low spreads and no commission do not make a broker a good one. Therefore, you should check the number of additional fees, but it should not be the only factor impacting your decision of choosing an investment partner for the Forex market.
Convenient and intuitive trading platform
To serve clients, brokers use trading platforms that might be computer software (desktop platforms), websites, and phone applications. Desktop platforms are slowly being replaced by mobile and browser platforms that are not “tied” to one device and can be used anywhere with the Internet connection.
The trading platform should be navigated intuitively so that at crucial moments the investor does not have to look for the desired options, e.g. ordering appropriate trades, setting support and resistance levels, and so on. Polish customers, who do not know English, should look for trading platforms with a Polish language version and Polish technical support.
Some brokers allow you to test their trading platform for free as part of a demo account. Later, the client can decide whether they want to use the regular trading account with the broker or not.