Choosing a Forex broker is a very important task, because you must entrust your money with them. If you are to trust someone with your money, you should feel fairly comfortable with them. Because this is such a significant decision, you will need to spend time researching thoroughly. There are six things to investigate, when searching for the right Forex broker.
The first thing you should look at is initial deposit, which should be around $300 to $500. Any broker asking for an initial deposit over $500 is unreasonable and should be forgotten.
Although the Forex market is an unregulated market, Forex brokers are regulated. In the United States, any possible broker you are interested in should be registered with the Futures Commission Merchant (FCM), the Commodity Futures Trading Commission, and a member of the National Futures Association. To verify a broker’s enlistment with the NFA, you can check on the NFA website.
The type of currencies you are interested in working with can affect the Forex trading hours. It is ideal to find a broker that offers 24 hour customer service, so that you can get answers to any questions you may have immediately. Having to wait for hours can cause you to lose money.
Besides offering 24 hour customer service, the quality of the service also matters. To test the customer service ability, call the support desk and ask a couple of questions. Pay attention to both how well the questions are answered and the attitude the person has about answering them.
Naturally, you should hire a broker that provides the currency pairs you are most engrossed in trading. The greater the variety of currency offered for trading, the better.
Another important aspect to look for is a professional and easily manageable platform. Otherwise, you will be struggling with the attributes of the platform while attempting to make a trade. All reputable brokers offer a demo account, which allows you to test out their trading platform without having to use actual money. Always play with the demo account, before making a final decision.
Finally, you should investigate the reputation of the broker. A simple way to do this is to Google the the name of the broker with the word “complaints” after the name. Look around and read the opinions of different traders on various Forex message boards.
If you thoroughly scrutinize the regulation, customer service, and reputation without forgetting to check out the initial deposit, currency pairs, and software, it is guaranteed that you will be completely satisfied with the broker you eventually select.