What makes a good online broker?
A good online broker will be regulated by the most respected regulatory authorities such as the FCA, ASIC & CySEC. They should have been operating for a number of years with a proven track record of delivering online trading services to clients across the globe.
They should offer the best trading platforms, ideally a platform that you are already familiar with. The MetaTrader 4/5 trading platform should be sufficient enough for most online traders. MetaTrader has a quick and easy learning curve so is deemed suitable for all experience levels of trader.
You should make sure that the broker offers the markets and trading instruments that you wish to trade. If you plan to trade currency pairs (forex) now but could branch into stocks in the future, then you should consider choosing an online broker who offers access to both markets. This will make the transition into other markets more convenient. You can choose from forex brokers, stock brokers, crypto brokers and brokers that offer a variety of different markets.
Trading costs at the broker should be low, the lower the spreads and commission the lower your overall trading fees will be. The online trading conditions should provide fast trade execution with minimal slippage. This helps to ensure that your trades get placed at the prices that you want them to.
The customer support provided by the broker should answer all client questions in a polite, prompt and sufficient manner. You can connect to the live chat on a brokers website to test how their customer service is. All traders should be treated equally, whilst you should be able to contact support via online chat, email and phone. Make sure that they offer a contact method that is suitable to you and available at least 24/5.
Some of the key points to consider when choosing an online broker are:
- Broker regulation
- Trading platforms
- Markets offered
- Trading instruments
- Trading fees (spreads / trade commission)
- Customer service
