When starting forex trading, it’s easy to assume that all traders are the same – and go with the first broker on your door. This is one deadly mistake that can quickly kill your forex career even before it starts.
Forex brokers are among the most critical players in your forex journey. They handle your money, provide you with trading resources, and affect your trading expenses. But sadly, most beginner traders in Singapore don’t understand this and end up with traumatizing experiences with Forex.
Below, we’ll share with you five reasons why you need to assess your brokers carefully.
1. Your Broker gives you access to a trading platform
Success in online forex trading largely relies on how comfortable you are with your trading platform. And since the brokers give you access to their platform, you need to have a broker you can rely on.
Their platforms need to be reliable, fast, and efficient. Different trading brokers also add some analysis tools for their platforms, making trading easier for beginners and pros alike. These platforms also provide you with precise market quotes and provide leverage for your account.
All this is maintained and supported by your broker. So, the better your broker is, the better your trading experience is, and the more profitable you become.
2. Your Broker determines your profits
Forex trading brokers make money by taking a small part of your profits as commission. They do this in the form of spreads. Spread is the pip difference between the buying and selling prices. The higher the spread, the higher the broker takes, and the lower the trader’s profits.
Therefore, you need to be sure that your broker doesn’t take too much of your profits. Look for a broker with a small spread and very effective platforms.
Additionally, check on their withdrawal fees in Singapore. Some brokers charge hefty withdrawal fees, reducing the earning potential of the traders.
3. Your Broker determines account and leverage flexibility
One of the biggest perks of trading forex is the available leverage offered by brokers. Even with as little as $500, traders can make transactions worth $100,000. This significantly raises the profit potentials for the traders. It also increases the risks involved.
Therefore, depending on your access to capital, you need to determine if you need a broker with high leverage or lower. With a ton of money to invest, you don’t need high leverage to make big profits. So, choosing one offering, high leverage only increases your risks.
A good broker should also provide you with different trading accounts. Depending on your trading goals, you need to have a broker that offers the trading account you want. We recommend Saxo forex Broker for beginners in Singapore looking for a broker.
4. Your Broker handles your account security
Besides helping you become profitable, your broker also handles the security of your funds and account personal details. So, you need to have a broker that goes big with the security of your details. Ideally, accessing your account should use two-factor authentication and other protective features.
The broker should also alert you whenever anything ‘fishy’ happens around your account. Furthermore, the broker should have separate accounts for their money and your money. You don’t want to lose all your profits because of your broker!
5. Your Broker is your only contact in the market
Once you have money in the market, your broker is the only person you can call when something is wrong. If their platform becomes unresponsive, or you experience some technical problems, only the broker will be able to help you.
As such, you need to find a broker in Singapore that’s quick to respond, and one with 24/7 customer support.
Succeeding in the forex market requires a lot of skill and analysis, but your broker plays a hand in it too. Without a good forex broker, all your efforts may not bear as much fruit as you anticipated. Therefore, before jumping onto every broker advertised to you, take some time, and do your research!