How to choose the best forex broker in Norway?

Forex is the largest and most liquid financial market globally. It dwarfs all other capital, bond, and commodity markets combined in turnover volume. Every day USD 1.9 trillion changes hands in the forex market.

By comparison, New York Stock Exchange sees $169 billion worth of shares traded daily, and the London Stock Exchange sees $97 billion in share trades per day. Forex brokers deal directly with clients on currency trading, offering them enormous potential for profit due to the constantly fluctuating exchange rates.

However, when choosing a broker, it is essential to consider many factors such as commission rates, payment methods accepted by the broker, and available products offered by that broker.

The following factors should be taken into consideration when choosing a suitable forex broker: 

Commission and spreads.

It’s the cost of trading currencies through an online broker and the difference between a given currency pair’s buy/sell prices. Low commission rates per trade are essential, as this will allow traders to maximize their profits on each trade made.

As such, experienced traders may opt to pay slightly higher commissions in exchange for larger spreads that lock in more significant profit margins on each transaction. It is also worth checking with your broker if they offer any special deals on commission charges.

The broker accepts payment methods.

The range of payment methods is another essential factor to consider, as this will dictate how and when you receive your profits from trading. For example, some brokers may require traders to deposit funds into their accounts before initiating trades or withdrawing money from their accounts.

In contrast, others may allow traders to withdraw profits immediately after making a trade without processing it through the company’s accounts. The more payment options made available through a broker, the more excellent flexibility trader has in managing their trading capital and cashing out profits.

Available Currency Pairs and CFDs.

Forex brokers offer a variety of products to traders, including currencies pairs and Contract For Difference (CFDs). In terms of currency pairs, most forex brokers will offer the major currencies such as EUR/USD, GBP/USD, and USD/CHF. Furthermore, they may also offer some minor currencies pairs that are less liquid and more volatile, such as AUD/XAU or NZD/JPY.

Contracts For Difference (CFDs) represent a contract between a client and broker where the client has agreed to pay any difference between the opening and closing price of the CFD when a trade is closed. In terms of leverage, very high leverage can be applied to CFDs. Brokers typically offer 50:1 to 400:1 leverage on most currency pairs, enabling traders to place huge trades with relatively small amounts of capital.

Account Types Offered by the Broker.

Trading platforms offered by forex brokers need to be considered before making a broker choice. These include a range of unique features such as news tickers and live quotes, among others that can enhance trading experiences for more advanced traders who have experience in technical analysis or wish to use advanced charting tools.

Trading platforms available.

The range of trading platforms offered by forex brokers is also essential to consider, as this will indicate how easy/difficult it is to place trades on the forex market. For example, most online traders will typically use MT4 (MetaTrader 4), which serves as an all-in-one platform that facilitates trades across multiple financial instruments, including currencies pairs and CFDs, among others.

However, more advanced traders may wish to use alternative trading platforms such as Saxo Bank, which offers a range of customizable features, including specialized charting tools and various automated trading strategies. These platforms are designed to enhance the trading experience for more sophisticated forex traders who know technical analysis.

Technical Analysis Tools/Charting Tools. 

In terms of technical analysis, most online brokers will offer a range of charting tools that enable traders to visualize charts that show price movements over a specific period, as well as trends that may affect a currency pair’s value.