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Friday, 29 June 2012

Forex Brokers

How to Find the Best Forex Brokers For You

Once you decide to leap into forex trading, there are lots of things you need to learn and understand before you actually start trading live. Assuming that you have invested decent amount of time in educating yourself about forex basics, now is the right time to choose a proper forex broker.

Before you start sorting out good brokers from the average ones, it is important to understand that even the most decent, regulated, professional and user-friendly broker will not make you a profitable trader. Most complaints regarding supposedly unprofessional broker posted on net is actually directly related to the lack of skills of a trader himself. Therefore, I am compelled to emphasize once more that forex education should be on top of your priority list.

Back to broker search! Couple of years ago, the abundance of forex brokers was rather poor. Today it is a completely different picture - the competitive brokers strive to achieve the perfection and welcome new traders to their expanding community.

Among the reliable forex brokers, the web is now full of questionable promises of incredible returns and easy trading. While the truth is that forex is not that easy at all and involves quite amount of risk if you do not possess at least the basic understanding of forex trading.

So, the first thing to look for a broker that:

1. Openly explains the existence of the risks involved in forex trading

The next thing that I find rather alarming is a broker that doesn't give its physical address, doesn't provide online support, doesn't have a direct contact phone number and doesn't answer emails within two working days.

Therefore, the next thing to search for on the selected broker site is:

2. Comprehensive physical address, live online support (and not offline 24/7, therefore leave a message!), phone number (definitely give them a call with a list of questions - even if you know already found the answers!) and email address.

One way of protecting yourself from fraud and possible misunderstandings with the selected broker is to check whether the forex broker is regulated by recognized regulation authority, such as NFA or CFTC. Regulated forex brokers usually don't hide their regulation number. On contrary, to show off their reputation and recognition, you are most likely to find the regulation number on the front page of the broker.

Thus, the next thing on the list is to check your broker for:

3. Regulation authority (in most cases listed right where you can see it!)

You might want to check out different trading platforms, both online and download versions, in order to figure out what suits your trading needs. Some brokers offer both web-based and download (generally, metatrader 4 platform), others have only one option available.

Hence, take time trying out free demo accounts, not only in order to practice your trading skills but also to:

4. Figure out which trading platform suits you best.

Wide spreads means bad broker! Generally, the spread on the majors shouldn't exceed 3 pips. If you notice that your broker is playing games and the spreads are jumping from 2 pips to overwhelming 20, it's time to move on and search for the better forex broker!

Consequently, the next step is to check for:

5. Trading terms and conditions, spreads, payment and withdrawal process, available trading tools and other features you are interested in.

Make sure to make it absolutely clear what your forex trading account comes with, which extra features have fees, what are necessary terms that needs to be met before you can withdraw your welcome bonus etc. The more questions you ask, the less trouble you will have later on.

Being well informed will provide you with a true vision of forex market and therefore five you a chance to make wise and reasonable decisions.

For more information you can visit www.forexvote.com that provides free online forex trading guide and latest forex news with daily technical and fundamental analysis.

5 comments:

vanilla said...

I really enjoyed reading your post. And I have this feeling that there are still more good stuff here and for that I’ll add your page to my bookmarks.

www.n8fan.net

Bobbie Hollie said...

Just wanted to say you guys are doing an excellent job with relevant content and the frequency of your blog post!!! Online trading, is an internet based investment activity which eliminates the association of a broker. Anyone who has a computer, enough money to open an account and reasonable financial history has the ability to invest in the market. Nowadays there are many Online trading companies working as portals for the biggest stock houses….

Leslie Lim said...

I've read a few good stuff here. Certainly value bookmarking for revisiting.


Rica
www.imarksweb.org

Binary Signals said...
This comment has been removed by the author.
Tom Worn said...

I would say that in order to find good brokers you should try to ask other trades that are perhaps more expeirenced than you so forums like forex peace army for forex traders,and for binary options traders you should try Best Binary Broker or binary options thats suck. Good Luck!

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