If you have been using the MetaTrader 4 demo account, you may need to transition to a live trading account so that you can apply your skills with real money at some point.
MetaQuotes- the software company behind MetaTrader is not an investment provider or brokerage which means you need to connect the terminal to a licensed broker. You need to be careful about how you go about choosing your forex broker if you want to be successful in the trade as a beginner.
Here five important things you should consider before you choose a forex broker if you are using Meta Trader as your primary trading platform:
1.Does the Forex Broker Support Metatrader4?
A majority of established forex brokerages support MT4 as their primary client forex trading platform. However, there are other trading platforms out there and some brokerages prefer them over MT4 for commercial reasons. Make sure the forex broker you select supports forex MetaTrader 4 out of the box before you open an account with them.
Most brokerages will offer MT4 as a free download after you create an account with them. This is more or less the same MT4 console that you can get from MetaQuotes albeit with some tweaks to support brokerage-specific features and add ons such as direct logins, custom robots, live data, custom swaps, etc.
2.Is The Brokerage Licensed?
There are many fraudulent forex and derivative brokerages on the internet. You need to be careful not to select a brokerage that is not licensed to provide investment and brokerage services in your country. You can check if the brokerage is licensed by visiting the relevant webpage on your trading regulator’s website.
Below is a list of regulators that publish up to date information on licensed regulators in their respective countries:
Australia- Forex brokerages are licensed and regulated by the Australian Securities and Investment Commission.
United Kingdom– The Financial Conduct Authority (FCA) licenses and regulates all forex trading brokerages in the United Kingdom.
The United States– You can find up to date information regarding forex trading brokerages on the National Futures Association’s website.
Canada– The Investment Information Regulatory Organization of Canada (IITOC) publishes detailed information on licensed forex brokerages in Canada.
Hong Kong– Forex brokers in Hong Kong are regulated by the Hong Kong Securities and Futures Commission (HKSFC).
3.Minimum Deposits and Transaction Fees
Some forex brokers will require a minimum deposit as low as $10 while others will require higher amounts before they allow you to start trading. Ensure that you are comfortable with the minimum deposit requirements published on the brokerage’s website before you sign up with them.
At the same time, you should see how much it would cost as commissions, withdrawal fees, and other charges to use the broker on MT4.
You should only shortlist brokers with reasonable minimum trading balances if you are a beginner. Some brokerages will hide things like transaction fees and minimum deposits in small print so be sure to do proper research before you commit.
Remember that you are free to change your forex trader at any time without losing access to your MT4 terminal.
4.Accounting Funding and Withdrawal Procedures
You must be comfortable with the accounting funding and withdrawal procedures on a broker’s platform before you choose them. Here are some of the questions you should answer as far withdrawals and deposits go:
How long does it take to deposit and withdraw funds? – You will need deposits to instantly reflect on your trading account and withdrawals to be fast and transparent with no hidden fees.
Funding Methods/Gateways- Which payment processing gateway or method does the brokerage support. This information will be available as part of the broker’s marketing. As an example, some brokerages will support PayPal or Credit cards while others can support other non-conventional methods such as bitcoin and Skrill.
The forex broker you select can be the difference between becoming a successful trader and losing all your deposits so be wise and take time to shop around before you settle on one. Happy trading!
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