Around a decade back investing only involved trading via phone. One had to make a phone call to his/her broker for taking an action or placing an order. Things have changed significantly since the inception and subsequent popularization of online trading. Today, investors can manage all aspects of their trading just by logging into the online trading platforms of their respective brokers. It’s true that things have become a lot simpler as far as investing in concerned. However, with so many options available on the internet, it becomes imperative for you to know how to pick one of the most efficient and trusted Forex brokers in Ghana.
You should always look to work with a broker who meets your needs aptly. We have come up with this write-up to make the process of finding a Forex broker simpler for you.
To begin with, always remember that you should never look for the best Forex broker. Instead, you should look for a broker who is best for your particular needs. So, before beginning you search, you will have to determine what kind of Forex trading experience you are looking to have.
In addition, you must also check some basic parameters; read through the tips below to know about them.
1. Check the broker’s affiliations
You must never forget to check whether the broker you are planning to work with is regulated and authorized by the country’s regulation authorities. So, when choosing between Forex brokers in Ghana, you must make sure that the professional you pick is authorized by the Securities and Exchange Commission (SEC) Ghana. Such affiliations stand as the testimony of the broker’s reliability.
2. The broker must have a user-friendly Forex trading platform
If you are reading this article, it’s obvious that you are not an expert when it comes to trading. So, it would not be wise to pick a broker who would expose you to a complex trading platform. The online platform for Forex trading must be intuitive and simple. Its user interface should be understood easily even by beginners.
3. The broker should offer good customer support
Efficient and good customer support contributes significantly in making a Forex broker a sought after professional. A regular trader would always have questions that he/she would want to be answered before making an investment. Only a qualified customer support team would be able to meet this need of yours. So, speak to customer support representatives of every broker shortlisted by you before you make your final decision.
Ask them a handful of questions either over the telephone or by mailing them. Open your account with the broker whose customer support team has answered your questions most efficiently.
4. Find out whether there’s any bonus offered on the first deposit
These days, almost every broker offers attractive capital bonuses on the first deposit made by a trader. This provides traders with some extra money for investing. So, before opening your account, you must make sure that the broker you are looking to work with also offers a hefty sum as bonus on the first deposit made by traders.
5. Have a look at the leverage options
The leverage options made available to you would vary from one Forex broker to another. The higher would be the leverage used by you, the greater would be the profit you would potentially make. However, high leverage would also mean more risk. That’s the reason why there’s nothing called “best leverage”. You should pick your leverage according to your style of trading. So, it would be wise to opt for a
broker who offers multiple leverage options (which includes both low and high levels). This will allow you to take risks only when you have the required support.
Related: High Leverage Forex Brokers
6. Know the trading costs
A Forex broker makes money from the fees paid by traders. The fees charged is usually the operating expense (the money the broker would need to serve you) plus the revenue (earned by the broker). The amount of operating expense and revenue depends on the “spread”, a term used for the difference between asking prices and bids.
To make sure that the broker you are planning to work with is not overcharging you, you will have to find out how he/she manages spreads. For that, you will have to find answers to the following questions:
i. Are spreads variable or fixed?
ii. What’s the average spread for every currency pair you are looking to trade?
iii. What would be the spread when there will be high volatility?
iv. Will there be any commission offered on each trade besides the spread?
7. Read through the broker’s policy pertaining to withdrawals
It’s imperative that you have a close look at the broker’s policy about withdrawals. You must know how much time you will need to wait before being eligible to withdraw money.
8. Open a demo or practice account
When we make a big investment we always want to be sure that we are taking the right decision. That’s the reason why we always take a test drive before buying a car. This makes opening a practice or demo account a must before trading with a new broker.
The good news is that today almost all top Forex brokers in Ghana offer demo accounts. This will give you the opportunity to test the efficiency of the professional before committing your hard-earned money.
A demo account would allow you to do trading using virtual money and thus help you to understand how the broker’s platform would work. Go ahead and trade with real money only if you are happy with the interface.
9. Find out information on account minimums
This is a must-follow tip particularly for beginners. There are some brokers who would allow you to trade with very little amount in your account. This in turn would reduce your chances of losing big money before getting well-acquainted with the world of Forex.
10. Don’t fall prey to gifts and perks
It’s good to get perks and gifts from your broker, but that shouldn’t be the only criteria for choosing a best forex broker. You should accept perks only if the broker has all the qualities mentioned above. That’s because there are many scamsters on the internet who would offer you gifts but would never offer you the service you expect from them.