For this week’s video, I’m answering this question which I was asked by Prasad:
Hey Rayner, how do I go about selecting a broker?
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Here’s what I said…
When you are selecting a broker, there are four primary questions which you should ask:
1. Is the broker regulated? Regulation ensures that your broker is abiding by the rules laid out by the authorities. It also gives you piece of mind knowing that there’s a ‘watchdog’ looking out for you.
2. Are your funds segregated away? This is to ensure that your funds are safe and not accessible to your broker to fund their business activities.
3. How easy is it to withdraw your money? Withdrawal should take a matter of days. If your broker takes weeks or even months to get your money back to you, something is wrong.
4. How is the product selection? If you’re trading Forex, you want to make sure that your broker offers the currencies that you frequently trade. These could be exotic ones such as USD/CNY, USD/CZR, etc.
And back to the markets! This week I’m looking at USD/MXN, USD/ZAR, AUD/USD, and Silver.