With the advent of virtual coins and blockchains being traded via OTC market or through dedicated exchanges of cryptocurrency, the seller and buyer arranged to sell and purchase coins between themselves directly. However, over time, cryptos became something else – from being a niche thing popular among computer geeks to a wildly recognized speculative asset, which needed more options and trading tools.
That made “Contracts for Difference” or just CFDs popular and people started to use them. As time passed, it became a popular tool used to trade anything – soybeans to gold and today, people use it to speculate the price movements of cryptocurrency.
So now that you know the importance; are you wondering how to find the best forex broker for cryptocurrency trading? According to FXDailyReport, we analyzed the important elements that will help you get the best Forex broker. The options for CFD trading are becoming popular almost every market participant today with many new brokers and long-existing brokers as well, and all of them propose CFD trading to their clients as an opportunity.
Therefore, when you choose a Forex broker, you have to understand that the CFD trading is on a contractual relation type between the client and the company, instead of a buy and sell kind of transaction. In simpler terms, your loss or profit will depend only on the registered prices at the beginning and end of your trade. Therefore, you should ensure that your broker will not manipulate prices and will use reliable trading data.
Let’s have a look at all the most significant criteria that you should consider while choosing a broker.
- Forex Broker Regulation
This is the first and most obvious criteria – make sure that you open your account with a regulated broker and before discussing further ask for it.
- Trading Platform
As mentioned earlier, go for a broker, which offers a CFD and Forex trading platforms, which you can be comfortable with, and that should fit your individual needs too.
It’s always a smart move to look for a broker with the lowest spreads and at the same time, also look out for effective marketing techniques.
- Order Execution
Starting with low spreads is certainly a good move, but having your orders executed at asking price is much better.
- Forex Broker with Dealing Desk or No Dealing Desk
Once you made up your mind and made your strategy, you can choose an STP, ECN, or/and NDD, also known as No Dealing Desk.
- Fund Security
You should choose a Forex broker who has his bank account(s) in Europe. This is important, especially with the segregated bank accounts. This is important for your fund security.
- Various Kinds of Trading Accounts
This is important as this can convince you of the broker you are choosing is good or not. A good broker will have many types of accounts to offer, for example, STP, ECN, and accounts that have spread reductions for better substantial deposits.
- Optional Leverage
As you know, Forex is the market, which is usually traded with leverage and to manage the position of trading well, choosing leverage is of utmost importance. The more the leverage offered, the better it is for you.
- Diversified Trading Instruments
Not only it is a smart idea but also exciting to invest in multiple financial markets and that too at the same time! Therefore, it will be a good choice if you choose a Forex broker, which can offer a good range of markets that you can trade on.
- Customer Service
Choosing a broker who cares and values its customers is not only reassuring for the traders but also is a very practical option. There should be someone who can address traders’ queries and requests, whenever they need.
Forex brokers usually offer educational training sessions, which will help traders, get familiar with the terminologies. This is another important factor as it helps you get comfortable with the whole trading process.
- Custom Tools
There are custom tools and add-ons that can help the CFD and Forex traders earn better and with less efforts. You can know of the broker is updated or not by understanding the kind of custom tools and add-ons he uses.
We hope the given factors will help you choose the best forex broker. However, it is also important that you understand the market and have some basic knowledge about it.