Abstract：The fact that there are many brokers today in South Africa; seeking to attract traders to invest with them, makes it very difficult to choose the best broker for trading. Not all brokers are suitable for traders. Some are fraudulent sites manifesting as brokers and seeking for traders to scam. We have therefore provided in this article the basic guidelines for choosing a broker for trading; bothering on their proof of regulation and approval from WikiFX.
By: Chima Amara
When it comes to choosing a broker for trading, every trader must pay close attention to the decision they make to trade with a given broker. Not all brokers are the traders' friends. Some brokers are fraudsters in the disguise of being a forex broker. Hence we have provided in this work the basic demand every broker must satisfy before one can select them as good brokers for trading. Below are the criteria for choosing a good broker:
« Regulation: This is the major demand every broker must satisfy before one can proceed to select them for trading. It is expected that any broker operating in South Africa must be registered with FSCA which is the body regulating all forex brokers in South Africa. Added to this; they are to be regulated at least by the global tier-one brokers' regulators known as FCA, FSA, and ASIC.
« WikiFX recommendations: WikiFX is an independent global forex regulator that carries out a thorough search through its agents to confirm the authenticity of any broker today in the forex market. It is recommended that all South African traders should visit WikiFX and choose from the list of their recommended brokers.
« Global Outreach: Brokers are expected to have their presence and office spread across the globe to make them accessible to their clients. This is very important in choosing a good broker for trading.
« Multiple options for funding and withdrawals: It is expected that brokers provide multiple options for deposits and withdrawals via Skrill, Neteller, Wire transfer, Crypto, PayPal, Credit card, etc. This makes it easy for clients to deposit and withdraw their funds.
« Nature of Customer's care services: An important factor to consider while choosing a broker is the manner of attention given to clients by their customer's service representative. Good brokers care so much about their clients' compliments and feedback and hence always provided 24/7 customer support services.
« Spreads and Commissions charged for trading: Traders must check the amount of spread charged by each broker before deciding on which to choose. Good brokers offer low spreads to their clients to maximize their profits.
« Range of Financial Instruments provided: The nature of exposure to the financial market offered by a broker is very necessary for choosing a broker today. Brokers are expected to provide a wide range of trading instruments such as Forex, Commodities, Crypto, Stocks, and Indices.
« Trading Tools Provided: Providing suitable indicators and educational contents are important factors considered in choosing a broker. Not all traders are exposed to the market news daily and brokers are expected to assist the traders in this by providing insightful updates about the forex market.
« Available Platforms for trading: Every broker should make it possible for the traders to access their platforms through Meta Trader 4 and Meta Trader 5 which is the global trading platform.
« Year of Establishment: Brokers with long years of active presence in the forex market are often the best options to select from once other criteria mentioned in this guide have been satisfied.
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