How to choose the best forex trading platform

For any new trader, choosing a forex trading platform is essential to entering the market. There are several things a trader needs to look out for when selecting a trading platform. These features are what separate a good platform from a bad one.

When choosing a forex trading platform, it’s essential to look out for several features to get the most out of your trade. It’s also necessary to do the correct research to find the most reputable. With so many, it could be challenging to find one that suits all your needs, but it isn’t impossible.

Most trading platforms are versatile, and an example of versatility is the MT5 for PC. This means that as a trader, you can trade from anywhere, anytime, as most platforms are compatible with all types of devices and software.

Learning about the market as a trader is essential, and getting the right platform is a step towards that. In this article, we will look at some important features to consider when choosing a trading platform.

1. The Platform Must be Regulated and Compliant

This is extremely important, as you don’t want to find yourself on an illegal trading platform. When selecting a platform, check its reputation. A reputable site will be properly regulated and also a member of some of the most important regulatory organisations in the industry.

For example, if a platform operates within the US market, it should be registered with the Commodity Future Trading Commission (CFTC). The CFTC regulates commodity futures and options in the US market.

If operating in the US, a platform should also be a member of the National Futures Association (NFA). Most trading platforms will also provide their NFA member number in the ‘About Us’ section of their website to show this.

Also, bear in mind that each country commonly has its own regulating body to ensure deposit safety. As a trader, it’s essential to find or open an account with a platform that’s regulated and licensed.

1. Check the Currency Pairs Offered

There are many currencies available on the trading market, but some are worthwhile. The most popular pairs include EUR/USD, GBP/USD, USD/CHF, and USD/JPY. Most platforms offer a wide selection of forex pairs, but it is essential for you as a trader to find the pairs that interest you.

1. Check the Account Features

Each Forex trading platform has different account offerings to look at. The main areas to consider when comparing the offerings are commissions and spreads, ease of deposits and withdrawals, leverage and margin and the initial deposit

Commissions and Spreads

A spread is the difference between the bid and ask of a forex pair. Most platforms that charge commissions charge a percentage of the spread. Many platforms that don’t charge commissions make it through wider spreads. As a trader, it is essential to know how your trading platform makes its commission.

Easy Withdrawals and Deposits

Every forex trading platform has a stipulated amount for an account to make a withdrawal or funding. They also have differences in place on how a trader can fund their online account. There are different methods, such as credit cards, wire transfers, PayPal, and even personal checks. A platform may charge a service fee for some withdrawals.

Leverage and Margin

In most jurisdictions, the maximum leverage is set by the local regulator. As a trader, you will also find other jurisdictions that don’t have a leverage restriction. This simply means the leverage is flexible and can be customised to suit a client. As a trader, always remember that the more the leverage, the higher the risk.

Initial Deposit

Most forex platforms allow traders to fund with a very small initial deposit. With leverage, therefore, the buying power is greater than the minimum deposit. This is what makes forex trading attractive to most investors and traders. Most platforms offer mini and micro accounts that have varying deposit requirements.

1. How is Customer Service?

Forex trading takes place five days a week for 24 hours, and a platform’s customer support service should be available anytime. When looking at customer support, consider whether it’s easy to get someone on the phone. You should be able to make a quick call to a platform, and this will commonly determine the type of customer support they provide as well as how long you have to wait for a service.

1. The Necessary Trading Education and Tools

Most trading platforms offer the necessary education and tools to assist their clients in building their knowledge of trading. This can come in the form of ebooks, courses, blog posts, online academic partnerships with specialists and educators, online webinars, and in-person seminars. These tools will assist you as a trader in progressing on your journey.

A well-designed trading platform will be easy to navigate. There will be clear buy and sell buttons with some other buttons to assist when there’s a problem. When selecting a platform, always consider customisation options, automated trading options, order entry type, backtesting features, builders and trading alerts. Always remember that most trading platforms offer a free demo account so that traders can try out the platform before opening and funding their accounts.