Three key aspects of a trustworthy broker

Since Forex brokers act as intermediaries that link individual traders with financial institutions and liquidity providers, your entire experience as a retail trader largely depends on how efficient and reliable your broker is. This middle link is especially important for those successful traders who rely on Forex as a consistent source of supplementary income. If the broker you are trading with fails to deliver in terms of reliability, it can endanger your profits, your initial deposit, and personal information.

Here, the experts at Octa, a global investing platform trusted by traders since 2011, offer clear-cut criteria for selecting a reliable Forex broker. With these tips, you can make a more informed decision—and save yourself a lot of worry.

Global recognition

As with many other sectors, financial brokerage thrives when it comes to global outreach. The fast-paced, volume-driven nature of financial markets favours international brokers that have the edge over their peers in many areas, including the diversity of business experience, exposure to best global practices and standards, and access to various national markets. As a result, globally recognised brokers can offer traders some unique advantages. Here are some of them:

• Since global brokers can access multiple regional financial markets, they can offer more tradable instruments to their customers by engaging with a wider variety of financial institutions. In turn, a broader range of assets provides a more diversified investing landscape.
• The wider the geographical reach, the better terms and a wider variety of tradable assets a broker can offer to the customers.
• Being exposed to international security standards and practices is highly beneficial for brokerage businesses in providing a safe trading experience to their customers. Those financial brokers that operate globally have the advantage of being able to follow the latest recommendations from international institutions and research cutting-edge cases.
• Due to their extensive expertise and a wide range of resources, global brokers offer cross-platform support of their applications and continuous improvement of user experience while meeting the highest standards in customer service.

Octa, a financial broker operating in more than 180 countries, leverages its global presence to offer its clients tight spreads and a significant variety of tradable assets with zero commissions.

Transparency

A trustworthy financial broker should act like a business partner to its clients, not as an opposing player in a game full of tricks. As such, a broker should wilfully and proactively share all information related to fees, commissions, and spreads beforehand without making any omissions that can later cause an unwelcome surprise to an unsuspecting trader. 

The withdrawal procedure should be fully transparent, simple, and quick so that successful traders can plan their lives around their regular income. A source of major concern for many, the withdrawal process should be fully described in the service terms and conditions to avoid confusion.

Transparent deposit and withdrawal procedures with clear steps and reasonable timeframes serve as a sure indicator of a broker’s trustworthiness. If your broker delays processing your withdrawal request for days, it is a clear sign that its operations aren’t streamlined enough or the broker uses shady tactics to pressure its customers. In this case, a hiccup can occur at any moment, leaving you all by yourself to try to salvage your profits. Experience

A long track record is a crucial reliability criterion for Forex brokers. With this market’s intense rhythm, only a few businesses show financial resilience and planning sufficient to operate for many years.

First and foremost, a broker’s longevity indicates the focus on business sustainability, sturdy financial processes, and a client-oriented approach as opposed to short-term planning and thinking of profit before customers.  

Broad geographical reach is another significant factor for you to consider. When a broker meets the strict requirements of various international jurisdictions while maintaining robust business profitability, it is a clear sign of trustworthiness. An experienced broker that boasts international licences and worldwide operations is less fragile and has more chances to survive through a crisis, significantly easing customer stress.         

Conclusion

Before picking a Forex broker, spend some time researching their credentials and learning the basic information about their history and range of operations. Extensive experience, international recognition, and transparent information on fees and commissions are the primary factors you should base your choice on. And remember that even a brief research can save you a lot of trouble in the future.