The forex market is so fast-growing that there are many more brokers than you can even begin to imagine. So what is it that makes one more reliable than another? We want to give you the easiest ways to verify how reliable each platform is with a short and useful guide.
Three key areas to pay clear attention to when compiling a shortlist of forex platforms are: the level of customer service offered, whether your platform is regulated strictly by financial authorities, and real reviews of each platform written by experienced traders. We’ll let you know the best things to look out for with each of these topics and give you some tips on how to give yourself the best possible chance of success in choosing a reliable trading platform.
Different brokers offer different levels of customer service
You might be wondering what customer service looks like when it comes to forex brokers. As with many other financial products, it does vary quite wildly from operator to operator. So, one thing you must work out for yourself before beginning to consider forex trading is what level of customer support is appropriate for your needs.
Some brokers offer a free demo of their platform to all new customers, which allows you to get to grips with their platform – particularly if their offering is proprietary, rather than using an industry-leading platform such as MetaTrader 4 or 5. Whilst you’re demoing the system, you should also be able to find out first-hand just how responsive the customer service team is on the platform.
If you are a beginner trader, you may be looking for a broker that provides knowledgeable call center operators who can be on the end of the phone and take any queries you may have when trading on the platform. Whilst this isn’t especially commonplace, there are several traders who do offer this service for their customers to pick up the phone and ask for assistance from a customer service representative.
More experienced traders may be happy to rely on a live chat functionality, but just how quickly do you need a response from the agent? This is another area that can differ completely across brokers. Some will offer instant live chat support on a 24/5 basis – remembering that the forex market is not open on weekends – and others may need 15-20 minutes to respond to a query on a live chat box. If you’re the type of customer who demands instant support, you will want to ensure that your broker has an efficient live chat support offering.
The importance of financial regulators and forex platforms
Reliability can also indicate trustworthiness. With this in mind, another factor worth considering when selecting a forex trading platform is whether it is regulated by financial authorities.
Using a trader that is regulated either in the currency you want to trade or in your own jurisdiction can offer protections and securities that give you more confidence in your trades and investment. For example, users trading currency pairs including British pounds (GBP) may wish to select a broker that is regulated by the FCA. One such example of a financial broker that is clearly regulated can be seen in this Exness review.
Whilst not all brokers are regulated by the FCA, the British agency – the Financial Conduct Authority – is extremely strict in their rules and often regarded as the gold standard approach to financial regulation, as they require forex brokers to segregate their customers’ accounts from the business’s own accounts and offer compensation schemes. It is understood that for the platform to meet the strict rules set by the FCA, they are going above and beyond other platforms’ reliability.
Other regulators that forex brokers are often supported by include ASIC (Australia) and CFTC/NFA (USA), with support also often seen by CySEC (Cyprus), FCSA (South Africa), and FSA (Seychelles).
Reviews by real customers are gold dust
One final step to reassure yourself before committing to a trading platform is to conduct thorough research on your shortlist of brokers by reading customer reviews of those platforms. With so many platforms now in existence, you are guaranteed to be able to find both relevant and detailed reviews on each of your shortlisted brokers.
However, in addition to customer reviews, which can sometimes be biased against a platform if a trader saw huge, quick losses of their funds, it can also be useful to do some additional reading on online message boards and social media platforms. It is well known that a public social media platform like Twitter/X has a search feature. It can be extremely beneficial to do a simple search of the name of each of your shortlisted platforms to see what other customers have previously said, and perhaps get to understand some of the most common complaints on social media before you commit your funds to any of them.
Message boards also offer opportunities for organic discussion about a certain topic. For example, there are discussion boards on Reddit that are dedicated to investors and forex traders. One such post gives a recent review of FCA-regulated brokers, which invited comments from other experienced traders, opening up a conversation about other platforms and people’s experiences with them. Just by doing some simple reading, you will be able to make an assured choice as to which broker best suits your requirements.
Considering each of these factors gives the most reliable platform for your needs
The clear takeaway from our guide is that with such a breadth of platforms now offering forex trading, the best way to find a reliable platform for your needs is to do your own research. Every trader has different needs, so what one person thinks about a platform may not be appropriate for your requirements.
Taking a demo of a potential platform before investing allows you to get hands-on with the product offered without risking your own funds, whilst doing some background reading of real customer reviews can bring key pros and cons to your attention before you commit to putting your funds into one particular platform.
Making sure a trading platform is regulated by financial authorities can give you extra confidence that your money is going to be looked after and protected. It is a combination of these different factors that will result in one platform being more reliable for you than another.
