Criteria to test the best FX Broker in Libya

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

• First things first; Does the Broker accept clients from Libya?: As we have mentioned previously, there are so many websites out there offering Brokers to local clients when they have not even fact-checked if the broker accepts locals. Unfortunately, this is the case for many of the best brokers with regards to several North African countries. We have confirmed with the Brokers we present here that they do open FX accounts to clients from Libya.

• A reliable, secure, and mobile-optimized platform: We are living in the 21st century, and that means we 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 while at the toilette.

• Spreads, Commissions, and other fees: Currency pairs are priced through the interbank market, a communications system used by big banks and financial institutions but without a central exchange like a Stock Exchange. Forex brokers make their revenues with their fees and spreads that arise from your trading transactions. And, they are not required to offer you the best interbank bid or ask prices, so they may intentionally display wider spreads with less favorable prices, adding to profits when they complete those trades through the system. So, spreads and commissions is a top priority that we took 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. In general terms, the more diverse the brokers offering is, the better the trading conditions they offer overall (although this is not an exact science).

• Brokerage licenses: We only recommend licensed brokers so we can ensure the safety of our readers and fellow traders. If a new broker has not got their paperwork filed and approved yet, you won't find them here on our site.

• 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 desire that your questions are to answered quickly, in a fair way, and accurately.

How to choose the right FX Broker for you?

Choosing a forex broker requires you to decide what type of trader you are, your goals, and how will you 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 you open a forex account because brokers can get hacked or go 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 that 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 will need to 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 just want to make sure they know a bit more about you before you get started.

It’s nothing difficult, it’s simply a matter of answering a few questions and possibly supplying a couple of 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 in, and all of 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 fulfill 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 that you use legal funds to trade.

• Responsible Trading: To make sure 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 from time to time, in the case that your trading habits change (Although this is very unusual).

Am I allowed to Trade Forex if I'm Muslim?

An Islamic Forex account is a halal trading account available to clients who respect the Quran and wish to invest while following the principles of Islamic finance. Islamic trading accounts differ in several ways from regular Forex accounts. 

As Sharia law prohibits the accumulation of interest, traders with Islamic accounts do not pay or receive interest rates. Also, transactions in Islamic accounts have to be completed without delays, so currencies must be transferred from one account to another immediately, and transaction costs must also be paid at the same time. Islamic accounts are also known as swap-free accounts because of this and they follow four basic principles to be considered Halal:

• Prohibition of payment and receipt of any interest rate (Riba)

• Immediate exchanges in the context of trading operations

• Prohibition of gambling

• Distribution of risks and benefits

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. Concerning margin-based foreign exchange trading, 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 that they will not result in losses.