One of the most important steps before starting your career as a trader in the Foreign Exchange or Forex market is to select a broker that you can trust and work with.
Generally speaking, a Forex brokerage is a firm that provides currency traders with access to a trading platform where they can buy and sell currency in the market.
An example of a Forex brokerage is the IC Markets which is an Australian-owned firm that provides effective platforms, better liquidity, and lower spreads for various traders engaging in the market.
As one of the world’s leading brokers, the IC Markets is regulated by the Australian Securities and Investments Commission or ASIC, making it safe and reliable for investors everywhere.
Here are some steps you need to perform first before you can start your trading career in IC Markets:
Compare IC Markets with other Forex brokers
If you are still on the fence on whether or not the IC Markets is the broker for you, consider looking at other firms that are also regulated by the ASIC or any regulating body in your country.
Comparing with other Forex brokers will allow you to make the best possible choice considering your circumstances. Here are some platform details you can compare:
- Features like Forex calculators and guides
- Price for use
- Accessibility like their platform compatibility across all devices
- Trading tools and their functions
Decide which currencies you want to trade in
There are hundreds of foreign currencies available all over the world. However, certain brokers may not be able to provide accurate quotes with different foreign currencies which can leave traders vulnerable to exploitation.
As of 2016, the IC market currently accept deposits in eight different currencies which include:
- Australian dollar (AUD)
- United States dollar (USD)
- Japanese Yen (JPY)
- Euro (EUR)
- Hong Kong dollar (HKD)
- New Zealand dollar (NZD)
- Great British Pound (GBP)
Before deciding on a broker, compare first the different Forex quotes from different platforms. It also helps to take a closer look at the spreads displayed by the brokers since they play a key role for scalpers and day traders.
In Forex, slippage refers to the difference between a trade’s expected price and its actual price upon execution. These instances usually happen during volatile market events when are order is executed without a limit or a stop-loss order.
Additionally, certain factors like the latest news events can make it impossible for a trader to execute an order at a specific price. When selecting a broker, make sure to look into how they can make this into a positive slippage into a client’s favor.
Familiarize with the different funding methods
Certain brokers offer various funding methods before traders can start their work. The funding methods dictate the kind of channel you will be using in keeping and investing your money. In some cases, investors may need to make a deposit which can be done in the following methods:
- credit card charges
- bank transfers
- wire transfer
- different forms of remittance
Before deciding on a broker, remember to determine your primary source of funding where you can easily deposit and withdraw money. You can also compare wire transfer rates from different companies to make the most out of your funds.
Research the company and its various networks
IC Markets and other Forex brokers generally have their own website which dictates their company’s history, vision, and overall goal. If you’re interested in cryptocurrency and Russian Forex market, you can put it as one of your considerations.
When it comes to engaging in various transactions, whether in Australia or in another part of the world, it is imperative that an investor must trust their broker by first understanding the company’s overall standing in their industry. You can easily find out about their behavior through the following sources:
- posts on social media accounts like Facebook and Linkedin
- activity on different online forums
- online profiles of key company employees
- authority blog posts on websites like Linkedin and Medium
Read different reviews from other users
Several people often leave reviews to different websites which specializes in listing the pros and cons of working with a certain broker. Before trading in IC markets, one must make the time to review what other users and business partners have to say about their experience and take their accounts into consideration.
You should be working with a broker that has a relatively clean reputation prevents mistrust and potential security issues.
While regulated brokers are generally more favorable compared to non-regulated brokers, traders still need to perform considerable research before deciding on a firm they’ve like to work with.
After all, when it comes to investing in a career dealing with foreign currencies, one can never be too safe when it comes to starting their own career.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.