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When choosing a Forex Broker take your time to ensure that you get the service and benefits you require.
With this guide we can hopefully narrow your choices down and help you decide.
1. It is of paramount importance that you do your due diligence and research thoroughly. Check to see if the Forex Broker is registered with the regulating authorities. The NFA or CFTC if they are based in the USA or the FSA if they are based in the UK. Think twice if the brokers are not registered with the appropriate organisations.
2. Dealing Desk or Non- Dealing Desk Broker? Fixed or non fixed spreads? These questions are important if you plan to take quick profits on a few pips. Large and/or variable spreads can cut into your profits if using this type of trading strategy.
3. Leverage – How much or how little? Research what is appropriate for your own trading strategy.
4. Demo account – does your broker provide this ‘try before you buy facility’? Get used to a broker before you start using real money. If you are going to start small then you probably waant to start trading “micro” lots. Make sure your broker can accommodate your budget.
5. Credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This is important if you intend to hold positions overnight.
6. Does the broker offer you extra services to help you such as charting, news feeds, analysis, market commentary and email/SMS alerts?
Compare Forex Brokers
Compare brokers and what they offer you. Check the reviews and see what others have to say. Ask questions. Phone them up and have a list of questions ready. Many brokers have excellent Customer Service departments and will be only to pleased to answer your questions – they want your business. If they haven’t got time for you go elsewhere!
Pick a couple of brokers that meet all your criteria and needs. Open demo accounts with both and trade in different market environments. Try out and learn all the features available on each trading platform.
In conclusion, do your research, know your own trading style and needs, and test platforms using demo accounts. And don’t forget to prepare lots of questions and get answers to them.
You have an enormous choice. Don’t just accept any service. They are not all the same. Make sure you use the broker who is best for you and your forex trading.
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Miles Carmichael many years experience and success trading currency pairs. A Forex specialist willing sharing knowledge and know how.
