Criteria to test the best FX Broker in Portugal

Here is a look at some of the criteria against which we test all the best Forex Brokers.

• First, Does the Broker accept clients from Portugal, and is it regulated in the EU?: As we have mentioned, many websites offer Brokers to local clients when they have not even fact-checked if the broker accepts locals. We have confirmed with the Brokers we present here that they open FX accounts to clients from Portugal.

• A reliable, secure, and mobile-optimized platform: We are living in the 21st century and need an FX broker to offer an equally (if not more) high-quality experience on mobile devices. You never know if the next major FX alert will catch you while having a pizza or at the toilet.

• Spreads, Commissions, and other fees: Currency pairs are priced through the interbank market, a communications system big banks and financial institutions use without a central exchange like a Stock Exchange. Forex brokers make revenues with fees and spreads arising from your trading transactions. They are not required to offer you the best interbank bid or ask prices, so they may intentionally display wider spreads with less favourable prices, adding to profits when they complete those trades through the system. So, spreads and commissions are a top priority that we take into account when choosing the best brokers.

• A great FX Pair selection: We are not just looking for the major pairs but also minors and crosses. Generally, the more diverse the brokers offer, the better their trading conditions (although this is not an exact science).

• Brokerage licenses: We only recommend licensed brokers to ensure the safety of our readers and fellow traders. If a new broker has not filed their paperwork and approved yet, you won't find them here on our site. The EU is very strict about the FX market; almost all of the best-known brokers are regulated in Cyprus.

• An efficient customer support team: As much as we would like to hope you will never need it, a customer support team is an important portion of a great trading experience. When things go wrong, you want your questions answered quickly, fairly, and accurately.

How do you choose the right FX Broker for you?

Choosing a forex broker requires deciding what type of trader you are, your goals, and how you will use the trading platform when investing in Forex.

When looking for a reliable forex broker, take your time to check for the one that will handle your trades and funds appropriately. The safety of your capital and private information is more important than any other consideration when opening a Forex account because brokers can get hacked or bankrupt. Unlike stockbrokers, where clients' funds have (usually) a higher level of protection, some dodgy brokers provide no account protection at all.

Also, before you give a broker any money, review its funding and withdrawal procedures. Some require long waiting periods until you can trade when you fund through checks or wire transfers, while others will charge hefty fees when you withdraw funds or close the account.

And, of course, most importantly, check that the broker offers the best trading conditions for the instruments you will trade. It won't matter if they offer the tightest spread on the EURUSD pair if your most traded pair is the Australian Dollar against the Yen.

The new Forex Trader process

As a new Trader at any broker, you must go through a strict process before the ride begins. Forex Brokers are becoming increasingly concerned about things like responsible trading and anti-money laundering, and they'll want to make sure they know a bit more about you before you get started.

It's not difficult; it's simply a matter of answering a few questions and possibly supplying easy-to-find documents. Here's a look at what to expect:

• Opening your account: This is the easy part, and it just requires details like your name, age, address, email, and phone number. It should only take a few minutes.

• Identifying information: The broker will ask you to prove your identity by supplying them with a copy of a recent utility bill with your name and address (issued within three months), a copy of your passport or driver's license, and proof that you own the debit card you're operating with. It's pretty easy to scan these documents; all the brokers on our top list are trusted and safe to share your information with.

• KYC (Know Your Customer): This process involves providing information to prove your source of funds or wealth. You may fulfil this task easily using payslips or bank statements. It is not as difficult as it sounds since it's just for the broker to ensure you use legal funds to trade.

• Responsible Trading: To ensure that you are not trading above your means (leverage instruments are risky, and losses may exceed your deposit), some brokers may check in with you occasionally if your trading habits change (Although this is very unusual).

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. Concerning margin-based foreign exchange trading and off-exchange derivatives like Forex, there is considerable exposure to risk, including but not limited to leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. You should not expect that the methods, techniques, or indicators presented in these products will be profitable or will not result in losses.