Tips To Choose Forex Broker

By Odrey Wise

Trading Forex requires setting up an account. Setting up an account in its turn requires choosing Forex broker. The right choice depends on the right understanding of what a broker is and what kind of services it provides. In simple words a Forex broker is a person or a company that accomplishes traders' orders. The number of brokers offering their services online is overwhelming so before making the choice you should make certain research to find out about the services available and fees charged by different brokers.

Firstly it is necessary to find out with what regulatory agencies your broker is registered. Despite the fact that Forex market is deemed to be unregulated you should check that your broker has proper registration otherwise you will not have the ghost of a chance to return your money in case of fraud or manipulation. Beware of non-regulated brokers and among the registered ones select only those with solid financial instruments.

Before opening an account in a certain broker company be sure that it provides high quality 24-hour Customer support. If you can any time day or night contact the firm by phone, e-mail or otherwise and get the necessary for you information from knowledgeable representatives you made the right choice.

Most Forex brokers provide rather comprehensive and easy Internet trading conditions for their Clients. The main feature of any trading platform is broker's ordering system. Try the options available by testing a demo account at some online brokers. The terminal should include such obligatory options: real-time rate quotes, account summary showing balance, profit, loss, and margin. Also note that a good broker always provides to enter the possibility to enter and exit the market quickly. These are minimum requirements but they should be fulfilled.

So the features and policies to look for while selecting on-line Forex broker are the following:

• Low spread i.e. the difference between buy and sell prices of any currency pair available. The lower the spread the less money gets your broker from you.

• Instant orders execution. This is essentially important when you trade for small profits as you get the price that you see and that you "click" and no other prices.

• Free technical analysis and charting should be available for active traders. Choose a broker that allows trading directly on the charts.

• Currency pairs. Good brokers offer at least seven major currencies (USD, JPY, GBP, CHF, EUR, UAD, and CAD).

And the last but not the least tip - be sure to scan fine print section of a potential broker to be completely aware of all trading nuances that may be imposed on new traders.

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