How to choose a forex broker that suits you

How to choose a forex broker that suits you

There are so many forex brokers out there, and the market is largely unregulated ( change slowly that many brokers are becoming regulated ) . This means that the trading experience can vary greatly from broker to broker. How to choose a forex broker is an individual process , each dealer will focus on things that will appeal to some but not other traders .

How to Choose a Forex Broker - Does your broker offer you this ?

Competitive Spreads : In Forex trading there is usually no commission, rather than merchants pay a spread ( difference

between bid and ask prices ) during an exchange . Some brokers offer fixed spreads , while others offer a variable margin . For example , a dealer may offer March 1 pip fixed spread on EURUSD at any time. Another broker can offer a variable spread , which fluctuates between about 1.8 pips during periods of high volume and 3.5 pips during periods of low volume. The spread is paid can have a huge impact on profits, especially when day trading or make a lot of trades. In general, the larger the gap the better.

Little re- quote: A new quote is when you place an order and price changes and you get "re- quoted " A message appears asking if you want to keep the price re- quoted if a broker shows . . a very tight gap, but constantly re-quotes when they are not really giving you that spread even if they are advertising it . therefore, you want a broker that offers a competitive edge and allows actually you negotiate the rate you see .

Security: One of the major concerns for a trader is to get their money out of their account. It does not matter if you make a killing on the markets if you or your broker scams your money gets stuck somewhere. I had problems with regulated brokers, and I had great experiences with unregulated brokers. However, the brokers are regulated under closer scrutiny against their non - regulated parts to choose preferably regulated brokers on the alternative.

Customer Support : If you need help with something that you want your broker to be there to help. To make sure they are, send some e- mails through the customer service ask for something when you start an account . Also, make sure the broker has live chat or phone support so you can get quick access to help if something goes wrong and you need to talk to someone quickly. Test customer service by sending e -mail and chat support before trying to make a deposit .

How to Choose a Forex Broker - do not always trust the opinions or views of others

When playing on the forex brokers in forums, sites and comments can be of some value , it can also be quite inaccurate . Brokers can post their own comments and what I find most often is that operators bash brokers simply because they have lost money in trading. Since nearly 90 % of people who try trading lose money , it is not surprising that many traders blame their broker. It is much easier to blame someone else than to accept personal responsibility.

So finally , I do not trust reviews . The best way to test a broker is that you can read on the broker 's website to make sure they offer what you need. Then open a demo account. If you like what you see, make a small deposit , trade, make a withdrawal and , if all goes well then continue.