Think before selecting a forex trading platform

The selection of the best forex platform requires a judicious and careful consideration because your account is resident in his database. Thus, the platform with which you maintain the account is expected to ensure complete secrecy of your personal information and details of holding. It is akin to selecting a bank to maintain your account.
The following factors are important while making the selection:
1. The reputation of the platform: The forex platform maintains your account, has access to information of your currency holdings and your account opening form containing your signatures and other instructions. This could be a potential cause of fraud. It is, therefore, necessary to be satisfied with the creditability of the depository participant, because they are at liberty to exercise controls over the account opening documents and account information.
2. Stability of the depository participant: How long have they been in the business and what is their expertise in this area. Ascertain this as you will have to deal with them as long as your investment is held in the account established by them for you.

3. Service charges: Participants are required to pay charges to the trading platform for utilizing its services. Regulatory authorities have not issued or laid down any guidelines for the charges investors have to pay to the platform owners. They have the freedom to determine their own charges. Hence, before selecting a trading platform, a comparison of the charges for this helps. Banks normally levy a lower service charge compared to other depository participants. There may be charges not specified, which are called the hidden charges, which should also be ascertained and discussed. For example, if you wish to close your account with a particular platform and transfer the investment to another one, you may be asked to pay charges. Most trading platforms treat this as an ‘off-market transaction’. It is not correct because it is only a transfer for which, the regulatory authorities do not levy any charges on the participants.