Five Tips for Finding the Right Forex Trading Broker
If you have been in the forex game, you will understand that a right forex trading broker can really be your life saver. Despite that there are so many brokers out there you can choose from, to find the right one is not always easy. Here are some tips to help you go about.
* Does The Broker Offers a Free Demo Account?
Many online forex brokers offer free demo or test accounts to new and potential members. Take advantage of them.
Aside from being a great introduction for those forex newbies, demo accounts also let you take a look at the trading platform used by that broker. You want an interface that is easy to learn and understand, and that you will be comfortable to use.
* Ask for References
A good broker will not mind giving you references. You need to be able to talk to other people who have used his services, and find out whether or not they are happy with their experiences.
If a broker is unwilling to give you references, he probably is not your choice.
* Examine the Minimum Deposit Requirement to Open an Account
Almost all forex brokers ask for a minimum amount deposit when you open an account with them.
In case one broker asks for a larger deposit than you are willing to start with, search for one that requires a lower minimum. There are options out there for every investor, no matter how much or how little they have to invest.
* Check the Broker's Credentials
There is no centralised, governing body to regulate the whole forex market over the world. However, the business practices of each forex broker is regulated by institutions in the countries where they are located.
A broker located in the US, for example, should be registered as a Futures Commission Merchant (or FCM) with the Commodity Futures Trading Commission (or CFTC). They should also be registered with the National Futures Association (or NFA).
* Be Clear About All Charges
As a general rule, cheaper isn't always the best.
Compared to their competition, some brokers may charge less for their services. However, they may try to make up for the difference with hidden fees that you may not even be aware you are being charged.
So, before you engage any broker, be sure to ask about possible hidden fees, read the fine print, and learn as much about them as you can.
To find a good forex trading broker is probably an inevitable experience for almost all players in the forex field. With what has been discussed in this article, you should at least know what to look at. But, don't get frustrated if you still make a mistake. Sometimes, we just grow out of try and error. - 23305
* Does The Broker Offers a Free Demo Account?
Many online forex brokers offer free demo or test accounts to new and potential members. Take advantage of them.
Aside from being a great introduction for those forex newbies, demo accounts also let you take a look at the trading platform used by that broker. You want an interface that is easy to learn and understand, and that you will be comfortable to use.
* Ask for References
A good broker will not mind giving you references. You need to be able to talk to other people who have used his services, and find out whether or not they are happy with their experiences.
If a broker is unwilling to give you references, he probably is not your choice.
* Examine the Minimum Deposit Requirement to Open an Account
Almost all forex brokers ask for a minimum amount deposit when you open an account with them.
In case one broker asks for a larger deposit than you are willing to start with, search for one that requires a lower minimum. There are options out there for every investor, no matter how much or how little they have to invest.
* Check the Broker's Credentials
There is no centralised, governing body to regulate the whole forex market over the world. However, the business practices of each forex broker is regulated by institutions in the countries where they are located.
A broker located in the US, for example, should be registered as a Futures Commission Merchant (or FCM) with the Commodity Futures Trading Commission (or CFTC). They should also be registered with the National Futures Association (or NFA).
* Be Clear About All Charges
As a general rule, cheaper isn't always the best.
Compared to their competition, some brokers may charge less for their services. However, they may try to make up for the difference with hidden fees that you may not even be aware you are being charged.
So, before you engage any broker, be sure to ask about possible hidden fees, read the fine print, and learn as much about them as you can.
To find a good forex trading broker is probably an inevitable experience for almost all players in the forex field. With what has been discussed in this article, you should at least know what to look at. But, don't get frustrated if you still make a mistake. Sometimes, we just grow out of try and error. - 23305
About the Author:
Click here for our review of a leading automatic forex trading system in the market, which will grant you a huge advantage over your competitors. You many also like to check out this related article about trading spot forex.
posted by Mr. Forex at
3:05 AM
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