FX brokers make money through the costs of trades. This includes commissions and the cost of a spread. It is important to understand all of the costs that are involved by choosing a certain broker. there are some brokers that charge more than others. It is important to choose one that charges fair prices. If your broker is charging too much, search for a different, more budget friendly choice.
It is important to remember that the spread is important in terms of cost. The wider that the spread is the more you are charged. Be careful with a broker that markets a zero spread as typically there is some form of catch involved. Remember if it sounds too good to be true it likely is.
It is also a good idea to determine whether the broker charges a fixed or variable spread. A variable spread means that spreads can be changed throughout the day based on the volatility of the market. Make sure that you do your research about the broker that you are considering and be careful with variable spreads as they can sometimes be misleading.
Fixed Spread AUD - USD Currency Pair on the TradeDirect365 Trading Platform
It is important to make sure that you only choose a broker that is regulated. In Australia, fx brokers are regulated by the ASIC. A reputable broker will have an Australian Financial Services License. Never trade with a broker that is not regulated by the ASIC if you reside in Australia. It is easy to find out whether or not a broker is certified as you can simply go to the website and locate the AFSl number if they are registered.
if you cannot find the AFSI number, you can go to the ASI website to search for them. There are many benefits of trading with a regulated broker. The main reason to choose a regulated broker is that these brokers are monitored and have to work with certain laws and regulations set by the Australian government.
It is also important to consider the withdrawal and depositing process of the broker. Timing is important as you will want to know how fast your funds will go into your trading account when you make a deposit. Perhaps more importantly, you will want to know how long it will take to withdraw funds for your bank account.
Funding methods are also important as you want to make sure that you choose a broker that will accept the type of payment that you wish to use. Most types of funding are available including debit cards, credit cards, a bank transfer, PayPal, POLi, Neteller, etc. It is also important to find out if there is a fee to deposit or withdraw your funds.
Customer support should be available around the clock in case you need it. Make sure that there is someone there to provide technical support whenever you might need it. In addition, customer service reps should be friendly and helpful.
Even though people don’t consider customer support when researching platforms, this could make or brake your interaction with the selected brokers.