Before you start trading Forex, you need an account with someone that will buy and sell in accordance to your decisions. It could be just one person or a company, but they are generally known as brokers. Forex brokers get their payment through commissions or service fees.
There are a lot of brokers in the business that can be contacted or hired online. This makes it difficult for traders to choose whom to partner with. Brokers have different terms and conditions, with fees varying from very cheap to expensive. Finding the right broker to team up with is crucial if you want to get the best out of your investment. You might have to do some research before you choose, but you will have a good idea of which brokers offer what kind of service for their respective fees.
It is important that the broker that you will be choosing should be registered with regulatory agencies. In America, the broker must be a Futures Commission Merchant affiliated with the Commodity Futures Trading Commission, as well as being a member of the NFA. These companies aim to prevent fraud, scamming and illegal trade. You should also check their financial records even if they are already registered. You would want to choose firms that have solid financial records and do not have illegal trading histories.
If you do not have a lot of money as capital, choose a broker that provides small value accounts. One could open an account with a good broker for 250 dollars, but the ideal starting account is at least 1000 dollars.
A good broker provides ideal leverage for your accounts. Leverage is what makes or breaks your business. You should choose just the right amount of leverage. 100:1 leverage is good for accounts around 100k, but smaller accounts (for example 10k) would be better with 200:1 leverage.
Since Forex market works round the clock, you should choose a broker that is available every time you want to contact them. Different brokers offer different support quality. Make sure that what you choose have good knowledge in the business and is capable of helping you anytime you need to.
You should also choose Forex brokers that are fast when it comes to making orders. You want instantaneous execution, no delays. This is crucial specially when there is trading with small profits involved. The price that is displayed on the order should be exactly what you get. A broker with these qualities would prove very beneficial to your fore trading business. Remember to choose wisely, and your decisions will pay off sooner or later.