How to Choose a Broker to Trade in Asia
The Asian market has registered significant growth over the years making investors from around the world more interested in trading there. Whether you want to trade in forex, stocks, commodities, or even cryptocurrency in the Asian region, you need to know how to find a reliable broker. This is because the broker you choose significantly determines your chances of success.
So, what are some of the key things to look for when choosing the best trader for your trading in Asia?
Check the regulatory and licensing requirements
Top on the list of crucial things to consider when looking for a broker to trade for you in Asia is whether they are regulated by the appropriate financial authority. Some of the regulatory bodies in Asia include
- The Hong Kong Securities and Futures Commission (SFC)
- Monetary Authority of Singapore (MAS)
- The Securities and Exchange Board of India (SEBI)
- The Japan’s Financial Services Agency (FSA)
The importance of ensuring the broker you choose for trading is regulated by the correct body is to be sure you’re safeguarded from fraud and malpractice. Those well-regulated brokers not only guarantee you the safety of your assets but also adhere to ethical trading practices.
Consider market access and instruments traded
The markets the broker has access to and even the instruments offered for trade differ from one broker to another. When intending to trade in the Asian market, you need to ensure the broker you pick enables you to access key markets. These include Singapore Exchange (SGX), Tokyo Stock Exchange, Hong Kong Stock Exchange (HKEX) and Shanghai Stock Exchange (SSE).
If your interest is in forex, choose a broker with a platform like Weltrade that offers pairs relevant to the region’s market. Some of the pairs that are relevant to the Asian market include EUR/CNH, USD/JPY, and AUD/SGD. In case you want to trade cryptocurrency or commodities like gold, ensure they are offered by the broker that you choose.
Check the trading platform and tools.
To have a hassle-free and enjoyable experience, choose a broker with a user-friendly platform that is also equipped with the various tools that make trading possible. It is vital that you take time to carefully check out the platform to be sure it’s user-friendly, provides real-time data, and provides analytical tools like charting tools, technical indicators, and market news. It is vital to choose a trader with a mobile-friendly platform or apps that can allow traders to trade on the go–if you like doing so.
Compare trading fees and commission charges
When trading, the fees and commission are some key considerations because they determine what you take home. Before settling in any broker, take time and compare the deposit/withdrawal fees, commissions, spreads, and any hidden charges.
You need to be cautious when analyzing these aspects because some brokers can be misleading. For instance, some can offer commission-free trading, but make up for it by having wider spreads. Other brokers may have high commission fees but charge lower spreads. The idea is to look for a broker whose cost structure aligns with your trading strategy.
Check customer support
Because trading in the Asian region involves several time zones, be keen to ensure that the broker you choose offers 24/7 customer support. It would be best to get a broker that offers multi-lingual support via various channels like emails, chats, and telephone. With reliable, fast, and responsive support, handling issues like trade execution, withdrawals, and account management can be easy.
Conclusion
If you’re looking to trade in the Asian market, you need to choose a reputable broker. Some things to consider include: if the broker is licensed and regulated by relevant authorities, their access to markets, the instruments they offer, and fees and commission they charge, just to mention a few.
