Prefering a forex broker is a real daunting task. Everyone seems to sound better when one trader read their pages of sales, but how will you know, what the value of your money is?
The first and most important things to keep in mind while searching the best forex broker is to check the safety of your funds in the hands of the brokers.
For example, you will not think of depositing your money in some forex broker who is operating in Panama or Bahamas. This is because in case of any issue, there will be rare chances of legal recourse that will support you.
You must choose a forex broker that possess a low amount of initial deposit. This is not the amount you need to start negotiating, but if a dealer wants thousands just to start an account, then it is definitely doubtful. An ideal initial filing requirement should be from $ 300 to $ 500 or less.
Forex market is a market that run in a very unregulated way,which means that there will be no exchange center. However, forex brokers are regulated here themselves in a co-ordinated manner. In the United States , they are registered as Futures Commission Merchant along with Commodity Futures Trading Commission, and should also be a member of National Futures Association. One can check the intermediary role of the NFA in the NFA’s website. If you failed to find a broker of your interest listed with the NFA, then try for another broker, who is listed and posses a clean past record.
The hours of Forex Trading changes depending on the currency you are more interested in trade. In this sense, it is vital to look a service corridor for 24 hours. Forex markets may be wild at sometimes. If you have any questions about running or a closure order, then it must be able to answer your question abour the time.
A wise test of the ability of a customer service forex broker is to contact with the support service and ask certain questions through phone. Take notes on how they respond to the questions and what is their attitude in the reply. Remember, you trust these people with their money. You must feel totally comfortable as all the wants will be addressed .
Prefer a broker which offers a currency pair that you are most interested in, or that presets a good selection to pick out. Currency pairs may be of a variety of breathing patterns, and you need to hold good menu choices.
You must keep in mind that forex brokers charge their member a commission amount by keeping some of the offer spread amount of bid. This means that the closer the spreads are, the more profits a trader will save which makes a considerable amount for active traders.
You should avoid brokers who cannot provide you answer for your queries. Moreover, forex brokers which five requites should also be avoided because this problem may result in trader loosing big amount of money later.
Withdrawals and Deposits Conditions
Check that the deposit and withdrawal conditions of forex broker are according to your comfort or not. Some of the forex brokers may charge you a lot of fees or wire transfers whereas some will allow you to use PayPal.
Moreover, some forex brokers tend to take a lot of time to make you withdraw your funds. Therefore, make sure you know the terms clearly before you join the broker.
A professional trading platform which is easy to use is a need. You should not be faced with the functionality of the trading platform, while trying to build up a trade. All forex brokers of reputed firms will present the opportunity to do trade on demo account. Also the demonstration software works in the same way as live trading platform. It will ultimately result in giving a chance to test fully the platform of negotiation, without pressure to spend real cash.
There are some services that a good online forex broker must provide which include a good trading platform, latest forex news and updates, charts, technical analysis features, efficient order execution system, excellent customer support, wide range of trading pair options and good dealing spreads.
If a broker does not offer all these basic service then it should not be considered to perform forex trading as traders now have a wide range of online forex brokers to choose from.
Always assure reputation of the forex broker which you prefer. One of the easy way is to search google with the street name and the word “complaint”. Check in detail around and try to get the views of traders in forex message boards. Try to spend a good amount of time to do your search. This is one of the important relationship. So you need to be absolutely well-to -do with the broker that you choose.
You can avoid depositing your money to risky online forex brokers and instead, choose a reputable and honest forex broker before starting your forex trading. You can do this by skipping the uncertain brokers (for example panama) from your options list and then choose an online broker from the remaining reputable forex brokers.
Also keep in mind that if a forex broker is registered with one or more of the regulatory agencies do not necessarily means that it is trustworthy and honest. Thus, just checking the registration will not ensure safety of your money.
Avoid Unusual Trading Rules
Stay careful about the forex brokers who have strange rules like providing minimum time to trader for holding a position.
Some of the brokers even specify in their rules that their member cannot use “pip hunt”, which means usage of trading strategies for quick profit, while trading. Any trader who makes high profits can be confiscated by the broker on the basis of this rule.
Choosing Brokers with No-Requote Policy
This refers to broker’s behavior of re-quoting the market once the trader places his order. In most of the cases the market is moved away.
Some of the brokers constantly trick their members using this strategy and keep taking their money. So, always make sure you choose a broker with no-requote policy.
The most vital thing here is to remember that you must do your homework. Another thing is that you should not be lazy too. Dont get cheated from the glossy pages of sales and outstanding claims. Explore! Use the demo account. You have to take time to do shop. Eventually, you’ll be glad you did it.