A Forex Broker is an individual or company that buys and sells orders according to the decisions of the forex trader. Forex brokers earn money by charging a fee or commission for their services. Before settling for your choice of a forex broker, here are some of the things you should look out for:
• A Regulated Forex Broker
Before making your choice of a broker, you should find out the regulatory agency under which each dealer is registered. You should endeavor to stay away from non-regulated firms and look for registered firms with clean regulatory records.
• The Online Trading Platform
You need to check out the different trading platforms offered by most forex brokers so you can choose the trading platform that would work well for you. You can do this by trying out a demo account with a few brokers before opening a real account. Most forex brokers offer either a Java/Web based trading platform or a Client Based trading platform. The difference between the two of them is stated below.
1. For Java based platform, there will be no need to install any software on your computer and you can trade from any computer with internet connection.
2. For Client based platform, you will need to download and install the software program on your computer. Bear it in mind that you can only trade from that computer.
• Access To Free Charting And Technical Analysis
You should select a FOREX BROKER that offers free access to the best professional charting and technical analysis services.
• Low Mini/Micro Accounts
For new traders, you should stick with brokers that allow you to open a mini or micro account. Some brokers allow a micro trading account as low as $100. This is good for beginners to get started with and helps them test their trading skills and gain some experience.
• The Customer Service
Customer service varies from broker to broker so you should endeavor to try them out before opening an account. You should look out for those that will respond quickly to your needs and provide 24-hour support.
• Low Spreads
The difference between the buy and sell price of any given currency pair is known as a spread. The lower the spread, the more money you save.
• Instant Execution Of Your Orders.
It is important for you to settle with a forex broker that instantly executes your orders and not those that will re-quote you when you click on a price or cause any delay to your orders.
With the above guide, you will see that it is not easy to find the right forex broker and it requires some real work on your part. You need to try different demo accounts and should not just pick the first broker that looks good to you. You will be better for it in the long-run.