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Things to consider when choosing a forex broker in Nigeria

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Selecting a trustworthy forex broker can be pretty overwhelming, especially if you are only making your first steps in trading and the financial markets. This article considers the key characteristics any trustworthy broker should possess. Read on to find out how to pick a reliable broker for your safe and successful trading.

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License and regulation
Without a doubt, license and regulation are of utmost importance. Your broker must have a license to be able to offer brokerage services. Also, it has to be a member of an independent regulatory organization. If your broker’s activity is not regulated, you can never be sure that your funds are secure. The purpose of an independent regulator is to ensure that any disputes and trade claims that may arise between traders and the brokers. So, to make sure that your interests are protected and your money is secure – look for a regulated broker.

Spreads and commissions
Brokerage fees are different types of commissions charged by your online brokerage when you have a live trading account with them. They can vary from broker to broker and can affect your profits and your overall trading experience.

The spread is the difference between the bid and asking price. Say you open a buy and a sell trade simultaneously, you’ll generate a loss. This is called the spread cost. For example, let’s say the sell price of an Apple share is $120 and the buy price is $121. If you buy one share at $21 and sell it immediately at $120, you will lose $1; this is the spread cost.

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The wider the spread, the greater the cost. CFD brokers usually quote spreads that already include their own trade fees. This usually results in a wider spread compared with the “true” market spread. On the plus side, you don’t have to pay any additional commissions. As you can see, it makes sense to look for a broker with the most favourable trading conditions and narrow spreads.

Deposit and withdrawal
Speedy, hassle-free and smooth withdrawals and deposits are also important criteria. A trustworthy broker should offer a wide selection of payment options. These can include bank cards, wire transfers and various e-payment systems.

An honest and transparent broker has no reason to complicate profit withdrawal. If a broker has a wide selection of payment methods, instant withdrawals, and zero commissions, it means that it’s dedicated to ensuring that your withdrawals are as fast and seamless as possible.

Trading platform and knowledge base
When you trade Forex, you need to use an online trading platform offered by your broker. The platform should have a simple, user-friendly interface. Make sure that your trading platform has a built-in news feed and various technical and charting tools for market analysis. You can also go over to your broker’s website and check if it has a special education section with instructions, insightful articles and useful training materials for novice traders. If your broker has all that, it means that it’s interested in your trading success.

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International recognition and awards
As a confirmation of its reliability and success in the industry, every broker should have a number of international awards on its shelf. AMarkets is constantly proving its leading positions in the international arena. Not long ago, the brokerage added two more prestigious awards in its bag, winning the Best Copy-trading platform Nigeria and the Best Affiliate Program Nigeria 2021 nominations at the International Business Magazine Awards.

Customer service
Prompt and dedicated customer service is the last on our list. Check if your broker is available when you need them. It’s perfect if your broker has round-the-clock customer support. Open a demo account with a broker you are interested in, then send it an email or a question via live chat. Monitor how fast and how thoroughly the broker’s customer support responds. If the customer service isn’t good, remove this broker from the list of your potential candidates.

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