Register to chat with like-minded investors on our interactive forums.
When you start thinking about investing in the forex markets one of the first things you must decide on is a broker. The average investor does not have the training, education, experience, or access to start forex trading, and will require professional assistance. There are a lot of options out there for forex brokers, so it is pertinent that you know what to look for.
Not every broker is going to offer you the same expertise, level of service, or even market access, so do your homework before deciding. There are some key areas that you want to get information on that will give you a better picture of your potential forex broker.
Pricing and Fees
Everyone has to make money, and a forex broker must be paid for his or her time and services. Before you agree to hand over your money you must look into the cost of trading with any particular broker. Who you choose is really up to the type of currency trading you plan on doing, if you need to have low spreads, and the number of transactions you need.
The best ECN brokers will understand this about potential clients and will be ready with pricing for different types of investors. Make sure you understand how you want to handle day to day trading, and find a broker that will best suit your needs.
Legitimacy
This next point really falls under the security umbrella, and it is essential for any broker you choose. As there are regulatory bodies that regulated brokers must be members of, get the proof you need that they are licensed. This means that they have standards of practice to uphold and you are going to have security when it comes to your money being treated legally and fairly.
Responsiveness
Being able to get things done is especially important in daily currency trading, as the action tends to happen very quickly. You want to hire a forex broker that has a reputation for being available and also doing what the customer asks. This is your money, and you need to be able to trust that your broker is going to be reliable and responsive when it comes to trading.
Customer Service
Quality customer service is going to make any experience better, and when it comes to your investments, it is a big piece of feeling comfortable with a broker. Make sure that the forex broker you choose offers various methods of contacting them. Should you have any questions or concerns it is important to know that someone will be on the other end of the phone to help.
The Platform Being Used
The sheer number of trading platforms available is growing almost every day, and your broker has to use one of them. While you cannot expect to be an expert on these technologies, you must choose a broker that uses a solid platform. You want a platform that is going to be easy to navigate, have the options that you require, and one that you ultimately feel comfortable with.
