Security level should be your first priority when making this decision. After all, you are going to hand over a considerable amount of money to a professional who claims to be an expert. Luckily, you can check the credibility of the professional easily as there are regulatory authorities that set trusty worthy brokers apart from the fraudulent ones. Some of these authorities include NFA, CFTC, FCA, ASIC, SFBC, BaFIN, and AMF, just to name a few.
Before you choose a broker, make sure they are member of the relevant regulatory authority.
2. Transaction Costs
You will have to bear the transaction costs no matter what type of currency you choose to trade in. Each time you start a trade, there will be either commission or spread to pay. Therefore, we suggest that you go for the cheapest rates. At times, you may have to pay a bit more to choose a more reliable broker.
3. Deposit and Withdrawal
Remember: good broker allow their clients to deposit and withdraw funds without any hassle. It's not in the interest of the professional to make it difficult for you to take out profits since their motivate to hold funds is to boost the trade.
In other words, the broker will only hold the funds in order to facilitate the trade. Therefore, you can get the profits you earned any time. It's the responsibility of the Forex broker to make sure the withdrawal process is smooth.
4. Trading Platform
The majority of trading activity occurs via the trading platform of the broker, which means that the platform should be stable and user-friendly. So, when hiring a broker, you may want to ensure that the platform is good. Good platforms offer free news feed, user-friendly charting and technical tools and so on.
Make sure the broker will fill you at the right price for the orders. Generally, brokers fill their clients at or near the market price. This is the price you can see when you hit the "sell" or "buy" button.
6. Customer Service
Lastly, you should know that brokers are humans and they are not perfect. Therefore, we suggest that you go with a broker whom you can get in touch with easily whenever you need to. Keep in mind that the broker's competence is as important as their high performance on the execution of trades.
At times, brokers are too kind and helpful when you are going through the process of account opening, but they offer pathetic "after sale" customer support. So, make sure your broker won't be one of them.
Hope these tips will help you choose the best broker.