The Indian Forex market is one of the most volatile markets in the world. With so many brokers and such a high level of volatility, it can be difficult to figure out which broker would be best for you. In this post, we’ll take a look at some factors to consider when choosing your Forex broker in India.
#1. Understand the Different Types of Forex Brokers.
There are a few different types of Forex brokers, and each type caters to a certain sort of trader. These include:
Market Maker Brokers – Market Maker brokers have been around the longest. They provide liquidity to the market by posting ‘make’ or ‘take’ prices on currency pairs, allowing traders to take whichever price they desire. While the spreads may not always be the tightest, these brokers usually offer very competitive commissions.
Direct Market Access Brokers – Direct market access (DMA) is becoming an increasingly popular choice for traders. DMA brokers allow traders to place their orders directly with liquidity providers such as banks and major financial institutions, instead of placing them through a middleman. Because of this, commissions are usually slightly more expensive than MM brokers, but the spreads are generally much lower, especially for large traders.
STP (Straight Through Processing) Brokers – These brokers provide a direct link between the trader and the liquidity providers.
#2. Find out about their Trading Platforms and How they Work.
Features such as charting packages and technical indicators can mean the difference between a great trading experience and an awful one. Other things to consider include:
How easy is it to trade? Is it intuitive, or complicated?
What kind of charts do they offer? Are they functional and up-to-date?
Is it easy to find the information you need quickly and efficiently?
#3. Research the Company’s Background before Signing up with them
This is especially important for those who use a market maker broker. While these brokers may not offer the tightest spreads, there should be a reason why they are still in business. These include:
Are they regulated by any regulatory bodies?
What sort of complaints have been filed against them?
Who are their shareholders and how much do they own of the company?
Has there been any brokerage scandals that may have negatively impacted them?
#4. Find out about their Customer Service and Support
How quickly can you expect a reply from your emails or phone calls? What about their customer service and support, is there a live chat window available for you to ask questions at any time of the day without having to wait in an email queue?
#5. Check out Reviews from other Traders on forums or blogs
It can also be helpful to do a quick search for reviews and feedback from other traders. Do they have any complaints against them? Have they been in business long enough that there are likely to be satisfied customers out there?
Start your Forex Trading with GoDoFX; GoDoFX is one of the most trusted Forex brokers in India, and they offer a wide range of currencies for you to trade with. Whether you’re looking for Indian Rupees or US Dollars, there’s no better broker than GoDoFX. It doesn’t matter whether you want to do some day trading or long-term investing; all your needs are taken care of by this reputable company!