One of the most challenging tasks when it comes to Forex trading is choosing a Best Forex broker in Dubai to deal with. This process can be really daunting and confusing especially for a beginner. If you are someone who is just getting started then here are a number of things you should know when choosing your broker:
Regulated or Mere Licensed?
While a Forex broker’s license might remove your apprehension and provide you a certain degree of security, you still have little to no protection compared to dealing with a broker that is registered with a regulatory body. A licensing body does not conduct the same directorial functions of a regulator nor does it have the same enforcement powers. A regulatory board on the other hand can intervene and take action in a broker-trader dispute. Regulatory bodies set rules which Forex brokers should strictly adhere to. These bodies protect Forex traders from unethical practices by brokers. It is highly advisable that you deal with a Dubai Forex broker that is not only licensed but registered as well. This can usually be found out through the broker’s website. If this information is not included, then you may need to ask for it by contacting the broker or better yet, look for another candidate.
Price Slippage
Slippage is a common occurrence when trading currencies especially if the markets are highly volatile. This happens when you place a trade but your broker is unable to fulfill the quote at the given price in their platform. For example, suppose you want to buy EUR/USD currency at an ask price of 1.4567. A slippage occurs and the price changed into 1.4569. This means that you experience a slippage of 2 pips and this can affect your profitability whether win or lose. While slippage cannot be avoided especially when you trade during highly volatile moments, you can do something to minimize its effects to you. When choosing software platforms of Forex brokers, select how much slippage you are willing to take. If you accept a range of 3 pips, then this means that if you decided to buy at an ask price of 1.5500 but the quote is 1.5503, then you will be entered into the trade at that price as you allowed your broker to slip you 3 pips.
Market Updates
Depending on where you live and where your Forex broker is based in, the market updates you get may not be as updated as you want them to be. Or the updates may require you to adjust your schedule in order to keep you posted - which you cannot afford to do. If this is the case, then you may want to go with a regional Forex broker instead. There are several Forex brokers that provide advanced trading platforms for Dubai Forex traders. These may help with providing stronger market updates during various sessions as well as stronger customer support availability during your local trading hours. If you need to connect with local banks for some reason, trading with a Dubai based broker would also help.