It goes without saying that first, you need to find a regulated Forex broker; that is to say, a forex broker that is under the direct supervision of a well-established authority such as the UK Financial Conduct Authority (FCA) or Cyprus Securities and Exchanges Commission (CySEC) whose sole purposes come down to enforcing strict compliance standards, fair dealing practices, and periodic audits. If a broker has a license to operate, they are expected to meet the highest standards and specific capital requirements at all times, and this speaks to their reliability. The truth is many traders have lost their money to unregulated brokers, so you’d be remiss not to avoid such untrustworthy brokers. Otherwise, you may never see your money again. So, your #1 factor is to trade with a fully regulated Forex broker. However, keep in mind that regulation is not the only important factor and there are other factors you should consider too.
👉 Quality of Services, Trading Accounts, and Trading Conditions
To close a profitable trade, you need to consider the quality of trading products and conditions of your broker as it will have an impact on your trading one way or another. One of the most important features that you should pay attention to is the spread. What is the lowest spread (fixed or floating)? The latter depends on the trade execution speed given the broker’s servers and overall technology in their pricing system. You certainly don’t want to face delays in the exact moment you want to open or close a trade, right? In addition, you should always choose the type of trading account that fits you and your strategy the best (Cent, Micro, Standard, ECN) along with their specifications such as leverage, minimum trading size, available trading markets (Forex, CFDs, metals, and energies) and trading platforms. MetaTrader 4 is currently the most preferred trading platform and can be accessed via different methods (desktop, mobile, and web) for your convenience.
👉 Importance and Quality of Customer Service
Does the broker of your choice offer prompt and reliable support? Can you contact their support department not only via email but also telephone and live chat? Are they available at any given moment since Forex is a 24-hour market? Are they capable of answering your questions and addressing your requests politely and professionally? The answers to the above questions should be an emphatic ‘yes.’ In case you don’t know, your broker’s support is of utmost importance to your overall trading experience because when you face a problem or have a request in your trading, you’ll need the assistance of a professional who can guide you. Some Forex brokers provide a dedicated personal manager for your account, so you can reach them directly at any time. Well-established and dedicated Forex brokers usually offer multilingual support service including Malaysian. It always feels right and comfortable to talk to your broker in your own language, don’t you think?
👉 Popularity and Vastness of the Broker
Characteristics such as being large, well-established and well-capitalized determine whether a forex broker is the best at what it does. Brokers that are regulated by a regulatory authority (such as FCA, CySEC, and ASIC) must comply with a minimum capitalization requirement; this is directly related to the broker company’s size and its ability to stay solvent. The better capitalized the broker is, the more credit relationships they can establish with their liquidity providers, and therefore, the more competitive pricing they can get for themselves as well as their clients. Small and unregulated brokers have low capitalization, and it’s better to avoid considering them altogether. You should also consider the broker’s worldwide recognition, brand name, and popularity.
How big is the broker? Where is its headquarters? Do they have local offices? Do they have real human interaction with their clients? What are their industry awards, sponsorships, etc.? Questions like these should be asked and answered. Last but not least, the company’s transparency is always a good thing in matters such as the number of its employees, management teams and CEOs. All of this information will represent the credibility of the broker.
👉 Client's Funds Security
Another important factor you should consider is the safety of your funds at your broker. You definitely don’t want to worry about losing your deposited funds or profits, do you? Now, you should bear in mind that fund safety and account segregation are usually associated with whether or not a broker is regulated. So, the best brokers usually keep their clients’ funds in separate accounts in major banks. Such brokers are usually members of compensation schemes to ensure that your funds are further protected. For example, ICF (Investor Compensation Fund) which is set up by the Central Bank of Cyprus and CySEC insures the broker’s clients’ funds up to 20,000 euros, and FSCS (Financial Services Compensation Scheme) which is set up by FCA will pay compensation to the clients up to 85,000 pounds if the broker cannot fulfill their commitments. When you open an account with such a forex broker that is a member of consumer-protection organizations, it makes you feel more confident and gives you peace of mind.
As a final word, choose your Forex broker carefully to experience a smooth ride throughout your trading endeavor. Above, we have listed the best Forex brokers in Malaysia with all the aforementioned qualities that you’d expect from a trusted Forex broker.