It's not easy to choose a forex trading broker. The landscape is very competitive and the offers are very tempting. In fact, you feel like signing up with the first broker you meet or see online. And, that can be a huge mistake. Here's a guide that can help you choose the right online forex trading broker:
1. Credibility: How reputed and credible is your broker? Is he registered with the appropriate regulatory agencies? Check if he's registered visiting their website and cross-referring his registration ID.
2. Cost: Forex brokers typically make their money by adding a margin to the buying and selling rates. So, look around for brokers that do not load rates heavily, but do not compromise on broker quality. You need both credibility and low transaction costs. So shortlist brokers having both these qualities.
3. Withdrawal process: Your broker must not place restrictions on money withdrawal. Your brokerage account should be like a bank savings account and you should be allowed to deposit and withdraw whenever. Some brokers try to hold on to account holder funds in the hope that the account holders will trade with these funds. Your broker must follow an open door policy.
4. Sophisticated trading platform: The trading platform is the heart and soul of online forex trading. It comes equipped with technical indicators that have built in tools that analyse and interpret data and give out buy, sell or hold signals. These signals help the trader make quick getting-in or getting-out decisions. These signals can help traders make profits and so it is important that the company provides you with a robust trading platform that enhances your forex trading experience with technical and fundamental data. The program must also offer a news feed and help you learn about major world financial events as they happen.
5. Speed: The trading platform must be speedy as well. Meaning that when you feed an order, it should help execute it at the price you entered or very close to it (in micro-pips). If you do not get your price, then you may not be able to make money. So, it is a good idea to open several demo accounts with credible brokers before choosing one.
6. References and service: Your online forex trading broker must provide 24-hour support simply because forex trading goes on for 24 hours! He must be equipped with technical and trading staff to resolve your technical or transactional queries. Also, check a few of his references to see whether the broker is as good as he claims to be.
These are the factors you must take into account while choosing your preferred online forex trading broker. Finally, remember to never ever compromise on cost and settle for a broker who offers cheap trades. Chances are that he will not equip you with sufficient data that can help you make money. Stick to the high quality brokers if you want to make profits and enjoy forex trading.
1. Credibility: How reputed and credible is your broker? Is he registered with the appropriate regulatory agencies? Check if he's registered visiting their website and cross-referring his registration ID.
2. Cost: Forex brokers typically make their money by adding a margin to the buying and selling rates. So, look around for brokers that do not load rates heavily, but do not compromise on broker quality. You need both credibility and low transaction costs. So shortlist brokers having both these qualities.
3. Withdrawal process: Your broker must not place restrictions on money withdrawal. Your brokerage account should be like a bank savings account and you should be allowed to deposit and withdraw whenever. Some brokers try to hold on to account holder funds in the hope that the account holders will trade with these funds. Your broker must follow an open door policy.
4. Sophisticated trading platform: The trading platform is the heart and soul of online forex trading. It comes equipped with technical indicators that have built in tools that analyse and interpret data and give out buy, sell or hold signals. These signals help the trader make quick getting-in or getting-out decisions. These signals can help traders make profits and so it is important that the company provides you with a robust trading platform that enhances your forex trading experience with technical and fundamental data. The program must also offer a news feed and help you learn about major world financial events as they happen.
5. Speed: The trading platform must be speedy as well. Meaning that when you feed an order, it should help execute it at the price you entered or very close to it (in micro-pips). If you do not get your price, then you may not be able to make money. So, it is a good idea to open several demo accounts with credible brokers before choosing one.
6. References and service: Your online forex trading broker must provide 24-hour support simply because forex trading goes on for 24 hours! He must be equipped with technical and trading staff to resolve your technical or transactional queries. Also, check a few of his references to see whether the broker is as good as he claims to be.
These are the factors you must take into account while choosing your preferred online forex trading broker. Finally, remember to never ever compromise on cost and settle for a broker who offers cheap trades. Chances are that he will not equip you with sufficient data that can help you make money. Stick to the high quality brokers if you want to make profits and enjoy forex trading.