Switching forex brokers is something that a lot of traders consider at one time or another. There are a lot of reasons for this, ranging from wanting a platform that is more suited to their education level to wanting a platform that is more stable and reliable. Whether it is a good idea for you personally to switch to a new broker is not something we can answer; sometimes it will be a Good idea for Trading and sometimes you’ll regret your decision.
In this article, we’re going to take a look at the main reasons why people switch forex brokers. If any of these reasons resonate with you, it may be time to make the move.
1. The Platform is Unstable
There’s nothing more annoying than trying to make a trade only for the platform to disconnect. If this happens on a frequent basis, it’s no surprise that you’re looking for something more stable. The same is true of platforms that take their time to make a trade. True, speed isn’t everything when trading on the normal markets, however, you do still want your trades to close as quickly as possible. A platform that isn’t living up to its promised connection and speed standards is not one that you’ll want to stick with. Not only could you end up missing out on the prices you want to achieve, but you will also end up frustrated… regularly.
2. The Platform Doesn’t Offer What You Want
When starting trading, a lot of new traders will choose a platform that is simple to use and easy to navigate; and this isn’t a bad thing. However, as you progress, it’s likely that you’ll want to get more out of your platform. Perhaps your current platform doesn’t offer the currency pairs that you’re interested in trading, or perhaps you want to move to a more automated platform that can trade on your behalf. Every forex platform has its pros and cons, and its strengths and weaknesses. While the one you are currently using may no longer be suitable for you, this doesn’t mean it’s bad overall, just that your needs have changed. Nevertheless, if any of the above rings true, it could be a good idea to switch to a platform that offers what you want.
3. The Average Level of the Spreads is Expensive
It’s important to always keep an eye on how much your forex trading transactions are costing you. While you will always need to pay a set fee, these can vary from platform to platform. For example, some brokers are still charging a 3-pip spread on the USD/EUR currency pair. While this may have been the norm in the past, it’s now easily possible to find brokers offering the same trade at 1.5 pips or lower. Therefore, if this is a currency pair you regularly trade, it could be worth switching to a lower priced platform. Not only does this make more Business sense, but it can also save you a lot of money if you regularly trade this pair at short timeframes.
In addition, it’s also worth mentioning here too that some platforms will even offer zero pip spreads. As the HotForex reviews on InvestinGoal show, this platform does just that if you sign up for a Zero Account. HotForex makes its money through commission, which is usually between $8 and $12 for 100,000 units. Switching to a provider that works this way could also be in your benefit.
4. Withdrawal is a Nightmare
One of the best reasons to switch brokers is if you fear for the safety of the money you have deposited. When signing up to use a specific platform, you should be given information regarding how to make a withdrawal and how long this will take. A broker that doesn’t fulfil these obligations is not one you will want to trade with long term. In fact, any platform that is unreasonably unresponsive or slow with withdrawal should be reported to the appropriate regulator. Most legitimate forex platforms don’t have this issue, but it’s definitely one that’s worth being aware of.
5. You Want Extra Features
Finally, one last reason to switch forex brokers is that you want the platform to use to offer extra features. Some brokers provide the bare minimum and purely act as a platform on which you can make trades. However, others will provide news reports, real-time currency spreads, and even social trading options so that you can see how the experts are trading. If you want more from your forex broker than they’re currently offering, don’t be afraid to look around and see what other options are out there.
Have you switched forex brokers recently? Let us know your reasons for doing so in the comments.
