Forex Trade: How Do You Choose A Forex Broker?

Finding the right Forex broker is not an easy task. There is a growing number of Forex brokers due to increasing interest in currency trading. Many new traders aren’t sure where to start. You will need to carefully search through a lot of forums and advertisements on the internet before you can find the right broker. You should carefully review each broker before you decide on one that is right for you. If you are looking a broker you can┬áto visit www.fxcm-markets.org.

Here are some tips for choosing a Forex broker.

24/7 Support

Forex is an open market that operates 24 hours a days. Your broker should be available for support any time of the day or night. Before you hire a Forex broker, find out if they will have a dedicated contact person and how quickly your issues can be solved. The Forex market has different trading hours depending on which currencies you’re interested in trading. No matter what time you are, you should always be able to ask questions about order execution.

Initial Deposit

Forex brokers with low initial deposits (300-500 dollars) are available. Some brokers do not offer this option. Brokers sometimes require that their clients invest thousands of dollars. This is not the best option, especially for new traders.

Regulation

Before you decide on a Forex broker to work with, make sure he is properly regulated. Many brokers are members of the US-based National Futures Association, (NFA), and Commodity Futures Trading Commissions (CFTC). Regulated brokers are those who have chosen to be regulated to enhance their credibility. It is a good idea to check with these organizations before you hire a broker.

Transaction cost

A spread or commission is required for every currency trade. Sometimes you will have to sacrifice a lower transaction to make way for a more reliable broker. Spreads can vary depending upon the broker you choose, as currencies are not traded through one central exchange. Some brokers use variable spreads while others prefer a fixed spread.

Software

Look for a broker that provides an easy-to-use trading platform. Reputable brokers will let new customers trade on a demo account. This allows you to try out the trading platform before making a real investment. Professional trading software will not show indicative quotes but live prices. You can read reviews and visit the websites of brokers you are interested to find out more information about their customer support, available addresses, phones and Forex trading rules.