Forex broker is an agent that does trading on your behalf. As such, the collect some commission every time you make a trade no matter if you're making losses or earnings. So, here are a few points to consider when you're choosing a forex broker.
Reputation of a broker usually exceeds them and it's easy to see who makes money and who are experienced. In this case, you can check their record to see whether they are consistent in forex trading. In this part you should do a thorough check because it is important to see who you have as your broker.
As been said before, determining which broker you want includes checking their profiles. One way to do this is by checking with Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CTFC) and a member of the National Futures Association (NFA). Find a broker that has a squeaky clean record and save yourself from worrying while making your trades.
One way of choosing a broker is by looking at initial deposit that they ask. Initial deposit is not needed as it is not for investment purposes, but just to pay the broker in case they're not paid during the course of investment. The ideal payment should be between $ 200 to $ 500 depending on the market movement.
A good software should be simple, easy to use and at the same time is clear on the investment that you're making. If you are new to forex trading, your broker should be able to let you trade on a demo account. A demo account works the same as a real software but it gives you the opportunity to test it before you actually make your first real trade.
Variety of Currency Pairs
Every good broker should be involved in different currency pairs and that makes them offer a lot of selections. So, choose at least a broker that has currency pairs that you are most interested in. Remember that every currency pairs have their own patterns in the market.
With every currency pairs that you trade in, its actually different across the whole world. Therefore, you will not want to call a broker who is sleeping half a world away when you want to make your trade. Therefore, it is vital to have a broker who can take your orders anytime you want. Try to contact the customer service desk and see how they respond to your questions regarding forex trading. Make sure you're comfortable as these guys are who you entrust your money with.
Therefore, make sure you do enough homework regarding the aspects above before you actually proceed into the forex market!
Source by Josh Koopman