Finding a solid broker for Forex trading can make a huge difference in successful trading, as most Forex trading habit studies show that users who feel comfortable with their brokers tend to yield higher earnings. As such, finding a broker that suits your personal trading needs is essential, and less daunting that most think. There is a specific set of criteria that will help dictate the quality of a broker. The following are 10 things to look for when deciding on the best Forex broker for you. You can also find specific user reviews and articles at Forex Sam Busters.
1. Minimum Deposit Amount. By having an understanding of your budget, you can evaluate which brokers you might be more compatible with from the get go. Nearly all online brokers require a minimum deposit, which can start as low as $25 US Dollars and go up to $100 for those more established. Depending on your level of financial commitment to your trading, you can use this as the first round of elimination for brokers outside of your financial situation.
2. Customer Service. Should you have questions about the operation of the site, it is important to have a reliable customer service team that acts and reacts as fast as the markets do. Check other user reviews of sites to find which brokers have better reputations in this capacity. Forex Blog has some reviews of some big name brokers and user satisfaction ratings.
3. Regulations. Making sure that the appropriate authorities regulate a brokerage will allow you to feel better about using them as a vehicle for your trades and investments. Click here for further reading about Forex Regulations.
4. Website and Platform Interface. Deciding on a brokerage has a lot to do with the aesthetics and feel of the sites or platforms themselves. Check out a few and see how it feels to navigate, access information and understand your way around. There are enough brokers that you should not have to waste time getting used to the site, it should feel good fro the start.
5. Minimum Spreads. Most legitimate sites have a spread of 2 pips, this is generally standard and anything larger than that should be looked into more deeply.
6. Funding Options. It is mandatory that you know that your broker of choice accepts the currency with which you intent to fund your account. Most brokers accept all major currencies, but it is still important to double-check.
7. Trading Fees. Some brokers charge for their trading platforms, however many do not. Again, double-check all fee schedules before passing your information. Escape Artist has a great article about the ways that online brokers get users to pay fees that may not be clear.
8. Leverage. If you are one who uses this tool frequently in your investing style then check the levels for each brokerage and be sure that it meets your needs.
9. Bonuses. A great list of the account activation bonuses rewarded by online brokers can he found here. Many brokers give cash bonuses for the first deposit an investor makes. For sites that are very similar, this can be a deciding factor in choosing which broker to go with.
10. Commitment to Educating Investors. Many sites impress the importance of continuing investor education to help them progress and better understand market fluctuations. If it is important to you to have a lot of information available, outside of the expected market data, then ascertain the quality of the educational materials provided by each broker.