How to Choose a Forex Broker

How to Choose a Forex Broker

The foreign exchange market (also known as forex, FX, or the currencies market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants in these markets can buy, sell, exchange, and speculate on the relative exchange rates of various currency pairs

Foreign exchange markets are made up of banks, forex dealers, commercial companies, central banks, investment management firms, hedge funds, retail forex dealers, and investors.

• It is, by far, the largest financial market in the world and is made up of a global network of financial centres that transact 24 hours a day, closing only on the weekends.
• Currencies are always traded in pairs, so the “value” of one of the currencies in that pair is relative to the value of the other.

For the retail investor/speculator today , there is a large number of Forex Brokers that utilise everyone’s needs.

In that vast jungle of possibilities, one has to find a path to land in trusted and safe hands.

                                             Our Trusted Broker

So how to do it ?

These are some of the key items to consider:

• Due Diligence- it is important to do your own  due diligence to find  a broker that suits your individual needs and meets your requirements, ,such as  whether the  broker is regulated, in what domain it operates, its capitalization, etc.
• Commissions/Spreads- Most forex brokers do not charge explicit commissions on their trades. They are into the bid/ask spread. Check into the “pip spread” on trades.
• Dealing Desk-Non-Dealing Desk-  Some Dealers collect prices from a number of outside sources (ECN) and pass them through directly to their customers. Others make prices themselves based on outside sources.

• Types of Accounts- Brokers can offer a variety of  of accounts:

Demo (no funds at risk) or Micro (tiny leverage) accounts might be suitable for those just getting started in forex trading..

Mini (small leverage) accounts might be suitable for those with limited currency trading experience.

Full (normal leverage) accounts are most suitable for experienced foreign exchange traders.

Check with your broker for capital requirements for each type of account.

• Platforms- Platform is just a fancy name for the trading program. Some are web-based and some are downloaded directly to you desktop. Take some demos to see which platform works best for you.
• Additional Features- Different platforms provide different features. Almost all provide charting of some kind. Some can include some very sophisticated trading analysis software, analysis tools etc.

Do you have questions or need help? We have  decades of experience in foreign exchange trading and can help you make a suitable choice. Feel free to  CONTACT US..