Choosing an adequate brokerage service is one of many steps of a solid investment plan. Your broker connects you to the financial market and can provide additional education to help you succeed. Finding a broker that aligns with your goals and needs can be the difference between success and disappointment.
Not all brokers are the same. Some off more features than others, while some brokers aren’t legitimate and can ultimately be scams. Researching ahead of time the different brokers you find will help you narrow down the best fit.
If you’re looking to find a regulated forex broker in South Africa, we have a beginner’s guide to comparing and choosing an online broker.
Determine Your Needs and Goals
Before anything, it’s a good idea to start with defining your needs and goals. When you have an idea, then you can find a broker that is more in line with your needs and goals. Since each broker and platform provides different features, having your needs figured out can help narrow down which broker is right for you.
For example, if you’re a beginner investor, you’ll likely want a broker with access to excellent educational tools and customer support. If money is a concern, you’ll want to look for brokers with small fees and even the lowest spread forex broker.
Check For Certifications and Regulations
Not every broker is regulated, which means not every broker is trustworthy. Because of this, online brokerage services can receive a bad reputation. However, there is still a wide range of regulated, reliable and honest brokers available that are waiting to help you succeed.
Depending on your area, you’ll want to check if the broker is regulated through their authority body. You should be able to find this information easily. If not, take that as a red flag.
Look At Their Fees
Every broker will have a fee. If you come across a broker offering services for free, there’s a good chance it isn’t trustworthy. Brokers need to be paid, which comes in the form of fees and commission put on you.
Look for fees per transaction, fees for opening an account, minimum deposit requirements, and monthly or annual maintenance fees. Remember, the purpose of investing is often to save and make money. If you’re losing a big chunk due to costs, it’ll take you longer to reach your goals.
Quality of Customer Support
An often overlooked feature of a broker and its platform is customer support. However, this is something that should be near the top of your list when comparing and choosing an online broker. You’ll likely need to contact customer support at some point, and you’ll be thankful when you can reach someone knowledgeable quickly.
User-Friendly Website and Platform
The last thing you want is to spend more time figuring out how to navigate the website and operate the platform. You want something user-friendly and relatively simple to figure out. Spend less time navigating a website and more time focusing on your trades and investments.
These are only a few of the many points you could consider when choosing an online broker. When in doubt, check for reviews from previous users. You’ll be able to gather lots of information from past experiences.
