There are a lot of brokers available in the Forex market. But instead of leaving you to wade through the sea of choices, here’s short checklist of tips to help you find one that is perfect for your needs.
Okay, there is no way to avoid this. Transaction fees are a way of life in Forex and they are how brokers earn them money. However, the size of the fee is not the same with each and every broker. There will also be a transaction fee attached to each and every trade you make. What you will pay in transaction fees can be either a commission based on the trade or a payment based on the spread. Do some homework beforehand as not all commission rates are the same.
Trading Platform Use and Knowledge
Not all Forex brokers use the same trading platform. You will want to find one that uses a platform that is easy to use, has charting and technical tools, a free news feed and is compatible with Forex so that you can execute a trade without having to wait for a software upgrade to take place. In other words, trading on Windows 95 just isn’t going to cut it.
The broker you choose needs to be a legitimate broker in good standing. He or she also has to have proper (and current) licensing and a secure server and position in the Forex market. You do not want to be trading out the backseat of a Dodge Rambler parked in a different parking lot each trading session. It may bring an element of fun to the trading but is probably a sign that this broker is not very reliable.
Brokers need to know the ins and outs of the market far better than you. This means that they must inform you of the best available price possible for every order you place. Provided the broker you choose has all the current technology in place, there is no way possible for them to not know this information. Plus, a stable internet connection ensures you can place your order at the precise moment you wish without delays or disconnections.
A good, trustworthy, legitimate, respectful broker will allow you to deposit and withdraw from your trading account without putting up roadblocks or causing you any kind of discomfort. If the broker does not make access to your account easy, simple and hassle-free, it’s time to find another broker.
Just like any other service provider, your broker should be able to answer all your questions and be able to assist when you encounter a problem of some kind. Your broker should be working for you and assisting you in every possible way that is related to their service. Anything less should be a signal to you that you need to find someone else. Sure, brokers are human and have bad days and can be cranky at times. However, they still need to be professional when dealing with their customers like you.