As the number of forex brokers with ZAR accounts has gone beyond count, it is mandatory to end up with a reliable and suitable entity for a better trading experience. Hence, you should consider the following factors before selecting a forex broker.
Let us assume that one of your friends is trading with a broker named X. So, you can know every detail about the quality of the services offered by X along with the options available by simply asking your friend. If he says something bad about the company, you can avoid investing in it. Likewise, you can look at some online reviews also. You will find several blogs, communities, and forums where people share their trading experiences. So, you can choose a reliable forex broker.
If a company comes up to operate as a trading broker, it should follow certain rules and regulations put forth by the higher authorities in the forex market. As there is no trading exchange for forex, these authorities are responsible for the management of the trading activities and the approval of the brokers. These authorities could be some organizations and your broker should have registered with any of these. Although a broker could mention that they are registered on their website, you should believe only after seeing the registration number and other details.
As you would have to buy currency pairs in the market, you should have some money in your trading account before you being your sessions. So, the primary amount you start with will be the initial deposit. Although the upper limit of this deposit amount depends on your wish, you should at least deposit the amount specified as the minimal requirement by the broker. So, you should check this deposit amount beforehand.
Deposit and withdrawal methods
If you wish to deposit money or withdraw your profits from your trading account, you should use any of the available payment methods. So, it is advisable to check the different types of options to choose a payment type that is suitable for you. You can either pay and withdraw using your credit card or you can go with the wire transfer mode. Apart from these common methods, you can find several other types of payment also.
The broker will charge you in different ways for the service it offers. Usually, the charges will be in the form of commissions. You should know these charges and commissions beforehand.
The forex brokers will help the customers or traders to hold a position even with insufficient funds in their trading account with the concept of leverage. As there will be a difference between leverages offered by various brokers, you should check this beforehand.
Your trading platform should have all the necessary features that are necessary for proper trading sessions. You should be capable of entering and exiting the trades without any hassles.
You should look at the quality of the customer support team of the broker.