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Choosing a Forex Broker Using a Rating System and Individual Reviews

By Alexander
In Forex Basics
Nov 14th, 2011

One of the best ways to secure a good Forex broker is by visiting online Forex review sites or Forex forums and using the filtering process some of these sites have for assessing Forex brokers. Some of the points used in the review process are:

  1. A ratings system. The rating system takes into account several issues, which include ease of funding, prompt attention to customer requests, fulfillment of withdrawals, the trading experience on the trading platform as well as the presence or otherwise of unfavorable trading conditions such as the platform freezes, slippages.
  2. Individual reviews from Forex traders who have actually used the services of each broker.

How to Choose a Forex Broker

Why is it necessary to use the review process on Forex review sites or Forex forums? The answer is pretty obvious. The best way to get a pulse of what it is to actually use a Forex broker’s services is to see it in the eyes of those who have used the services of these brokers. A popular proverb says that it is better to learn from the experience of others than to have to learn from your own experience. Here are some points to look out for when using the ratings system on Forex review sites.

Funding and Withdrawals

When it concerns issues bordering on withdrawals, you need to look at the following:

  • Does the broker handle all withdrawal requests expeditiously in an equal measure? In other words, will they fulfill a $100,000 withdrawal request in the same time as a $500 request, or do complications come in along the way?
  • Is the process of account funding easy? Alternatively, are you required to carry out so many verification’s beyond the regular process of submitting a government-issued ID and proof of residence?
  • How do bonuses affect withdrawals?

The Trading Experience

Some brokers have such complicated proprietary platforms that navigating the platform in order to carry out the normal process of trading, charting and performing technical analysis is a nightmare. Trading is hard enough; why go through more stress just using a platform?

Then of course there are the well-known enemies of trading; slippages, stop hunting, variable spreads, platform freezes, etc. Previous users of a broker can always tell you what to expect when you use a particular broker.

Customer Complaints

Customer complaints are not out of place. Many are usually frivolous requests from inexperienced traders bordering on issues they have not fully understood. But some are pretty genuine and knowing how a broker responds to them will give you an idea of what to expect if you find yourself in similar situations.

There are other issues to assess, but the ones above are usually the most common issues that will confront the trader in using a broker’s services. So before you commit your hard-earned cash into the hands of a group or firm which you probably will never have the opportunity to transact with on a one-on-one basis, make sure you do your homework. Extra knowledge about Forex brokers can be found in article called 5 types of Forex brokers you need to know about.

Happy Trading!

P.S.: More about Forex brokers and unethical tactics scam broker love to use can be found here: “5 tips how to recognize Forex broker scam”.

Image source: flickr.com

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4 Responses to “Choosing a Forex Broker Using a Rating System and Individual Reviews”

  1. Pat says:

    Very well put, I especially enjoyed the portion regarding customer complaints. So often a broker will be easily accessible when you want to execute a trade or sign up for a new service; but when you actually need assistance handling a live order, they’re no where to be found!

    • Alexander says:

      I agree with you Pat. That’s why ordinary traders are looking for new broker every single month. I wish brokers stopped playing with their clients.

  2. John says:

    I’ve traded with a few brokers and ended up at Vantage FX ins Australia. No problems so far in about 6 months of trading. The best I have found so far.

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