In Saudi Arab, Forex trading is growing with rapid trade as people are looking alternative method to invest their money. In last 8 years, number of Forex broker jumps in Saudi region and hence you can find hundred of Forex brokers in Saudi Arabia, claiming them self to be best Forex broker.
However, if you are new to Forex trading in Saudi Arabia, i will advise you to be careful while you choose your Forex broker. One of the reason to be careful is that all Saudi Forex brokers are not regulated and lot of these brokers are scam. So check the credibility of Forex broker before you indulge in any sort of collaboration with them. Below are some helpful tips before you decide to trade Forex with any broker.
Tips (Choosing Saudi Forex brokers)
Always do online Forex trading with regulated Forex broker. Regulated Forex broker is the one which assure integrity of Forex trader and overlook the broker , working with regulations provided by compliance department of concerned regulatory body. The strictest broker regulations exist in Northern America, Europe, Australia, and Japan. So, before depositing any money on your Forex trading account, check whether your broker is registered with at least one of the following agencies:
- Australia: ASIC, AFSL
- Canada: CIPF, OSC, BCSC
- Denmark: Danish FSA
- Germany: BaFin
- Hong Kong: SFC
- Japan: FFAJ
- Spain: CNMV
- Sweden: FI
- Switzerland: ARIF, FDF, GSCGI
- United Kingdom: FSA
- United States: NFA, CFTC
Commission Free Trading and low Spreads
Some brokers earn profits through commissions and spreads, which may be involve some additional charges. Some may charge a flat-rate trading commission, while some would just simply mark up the spread.
A lot of forex brokers you come across advertise that they don’t charge any commissions, while they make money with wider spreads. There are three main commission structures forex brokers use, which are the fixed spread, variable spread and the commission charge based on a percentage of the spread.
Online Trading Platform
It is really important that the platform the Forex broker trades with is dependable and reliable, which doesn’t crash often, especially when global economic events are taking place. Stability of a platform is one of the major keys to successful trading.
A professional and passionate trader will keep an eye for a stable platform that won’t crash or freeze. There are some traders that are not caution about the stability of their platform and don’t pay attention to the market frequently. Point to be noted
- Fast execution
- Choice of trading platforms i.e Mobile, Desktop etc
- MT4 , MT5 etc
- No Requotes
Please try to trade Forex with broker, who is giving regional language support , i.e Arabic language support for Saudi Forex traders. Also make sure, customer support is hassle free and 24/5.
Make it clear that your Forex broker is providing you start of art technical analysis and reporting tools.
- Technical Analysis
- Economical indicators
- Daily market updates and events
- Currency quotes
When you trade with a Forex broker with a high leverage, it increases your potential profit and could also increase the risk level. Leverage is a ratio between your trade available capital and the capital in your trading account. If you have a minimal amount of capital, you will need a high leverage to gain significant amount of profit. Professional traders find leverage levels very important.