Forex trading is becoming popular everywhere and hence, the number of brokerages also increasing. You can easily find tons of forex brokers with ZAR accounts online. However, you should check the following before choosing an entity for a better experience.
Reputation
If there is a forex broker offering trading sessions for people, at least a few of its customers will be online giving reviews about the company. Else, you may have someone who has experience with that company and he may say you about the services. Likewise, you should analyze the reputation of the company. If people are talking great about the broker, you can proceed with it. Else, you should avoid it.
Regulation
Apart from reputation, you should also ensure that the broker is compliant with all the regulations necessary for a trading broker. You can find some regulatory bodies in every country to manage and approve the trading brokers or platforms. If the website is approved by these authorities, you can proceed without any hesitation. It means that the company generates enough revenue to support the customers even when something bad happens in the market. Likewise, a broker will become reliable if it follows the trading regulations properly.
Initial deposit
Before opening a forex account with any broker out there, you would have to fund your account. Some brokers may ask you to begin even with a smaller amount, while some brokers’ initial deposit requirements will be high. Depending upon the amount you have in mind, you should choose the broker.
Commission and other charges
The forex brokers do not have a specific rule of charging the traders. So, they could charge you in any way they want. However, most of the charges will be based on a commission from your spreads. Sometimes, there will not be any commission. But the broker will gain with your wider spreads. So, you should know the method of charging and commissioning of your broker.
Deposit and withdrawal methods
Since you are about to add and withdraw money all the time on the trading platform, you should know the available methods of deposit and withdrawal. Some commonly used payment methods are wire transfer, credit card, PayPal, and the likes. Also, there will be some requirements to meet to deposit and withdraw. There will be a charge for withdrawals and you should know it.
Leverage
The forex market offers the advantage of holding a position whose value is more than what you have in your account. This activity is known as using the leverage offered by the broker. For instance, even if you have only $100 in your account, you can use the leverage and can hold the position of $1000. There will be specific rules and policies for the usage of this leverage and the size of the leverage offered by the brokers will vary.
Customer support
It is better to work with a broker that has an efficient customer support team dedicated to answer your queries and solve your issues.
