Factors to Consider When Choosing a Forex Broker

By | May 20, 2015

There is no doubt that one of the most important decisions that you will make with regards to forex trading is the forex broker that you choose. While specific trading decisions will decide the extent to which you profit or lose, the choice of forex broker will define the overall success of your currency trading path. Read more on forex broker reviews.

Here are some key factors to keep in mind when you are making your choice.

Regulation
– The forex market is an unregulated market. What this means is that there is nothing like the stock exchange that regulates it or makes rules that need to be maintained. While there is no global organization that looks into the ethical working of the forex markets, there are specific institutions in each country that regulate the forex markets. Read more in this zulutrade review. For example, in the US, the Futures Commission Merchant (FCM), the Commodity Futures Trading Commission (CFTC) and the National Futures Associations (NFA) are financial institutions that regulate the markets. Brokers associated with these organizations can be considered reliable. But don’t take their word for it. Check the website of these organizations for companies that are listed.

Trading Platform
– The trading platform is an important aspect of forex trading since here is where all the orders are placed.. Checking out the trading accounts,catching up with forex news or even looking up key forex trading analysis are all important. Most good forex brokers offer their own forex trading platforms and allow you to use the demo account for a limited period of time to be able to assess its efficacy.

Trading Account Deposit
– The deposit is the minimum amount you can make in order tomaintain in the trading account. This is not related to the minimum lot size that is allowed for trading. Forex brokers who charge between $300 and $500 should be considered well within acceptable limits.

Responsiveness
– Forex trading takes place throughout the day and night. The level of returns that you get depends on the speed with which you place the order. Sometimes the difference between large losses and profit can be the speed of responsiveness and trade execution of the broker. This is why you need to ensure that the forex broker that you choose is extremely efficient and capable.

Currency Pairs
– Not all forex brokers offer all currency pairs. So if you are interested in trading specific currency pairs, you may want to check this aspect with the forex brokers that you are considering.

Trading Account Details
– Specific aspects of the trading account like spreads offered, leverage allowed, minimum deposit, minimum lot size, methods of withdrawal and deposit and level of help in forex analysis should be investigated.

Leave a Reply

Your email address will not be published. Required fields are marked *