How to Choose the Right Business for Beginners: A Step-by-Step Guide

Beginners entering the Forex market are often confused and have no idea where to start. Choosing a broker can be a great first step when dealing with the foreign currency exchange market. In fact, you can’t trade without a broker — this middleman is the one giving you access to the market and lets you buy and sell currency. It’s a vital third party in FX. 

There is a huge variety of brokers online. While you can choose one straight at https://fxcash.net/catalog and get cashback for your trades, it’s crucial to pick brokers suitable for beginners. Below, we will explain what to look for.

Check for Regulation

Scammers and unfairness are common in the Forex market. To avoid that, you should look for middlemen that are regulated. Regulation means that they follow the general rules and practices set by major financial entities, including: 

• FCA (UK);
• CySEC (Europe);
• ASIC (Australia);
• NFA or CFTC (USA).

Regulation is a big deal for brokers, and they always boast about their fairness. So, if you can’t find the data on their practices, they could be a fraud. Additionally, avoid brokers that are regulated in an unknown location.

Review the Trading Platform

Every third-party service for traders has a platform where you can buy and sell currencies, place trades, and check your progress. Some brokers use popular platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5), while others prefer to craft their own unique designs. Ensure that the one you choose is user-friendly and has all the options you are interested in using. To test it, use a demo account first.

Look at Spreads and Fees

Third-party FX services commonly make money through spreads and commissions. Although some of them are disclosing this information right away, others might hide the fact that you will be paying extra to trade with them. So, pick a broker with tight spreads and no hidden fees. You can also use FxCash to receive cashback on trades and minimize commissions.

Avoid Investing a Lot

It may be tempting to invest a lot of money into one trade without a plan, and most brokers encourage it. After all, that is how they earn money. As a beginner, it is vital to start small until you learn how to trade properly. Choose a middleman that doesn’t require a big first deposit — up to $100 is a normal sum.

Contact Customer Support

Once you join a platform, you will most likely have a lot of questions. That is why the broker should always incorporate a good customer support team as part of its services. It should be responsive 24/7 via a live chat, email, or phone, and be able to help in your language. Contact the customer support before you choose a broker.

Take Your Time Searching for a Broker

While a broker is an essential part of trading, you shouldn’t rush the process of picking one. Make sure it offers tight spreads, responsive customer support, is regulated, and suits your preferences first.