Choosing a Forex broker especially for a newcomer can be quite an intimidating task. With no clear picture of where to start of from, here are some initial points that will guide you towards choosing the best Forex broker for you.
When looking for a Forex broker, you need to check certain points. These include:
Registration: Where is the broker registered? The Forex brokers have regulating authorities like the NFA (National Futures Association) of which your Forex broker should be a part of. Moreover he needs to be registered with the Futures Commission Merchant (FCM) and the Commodity Futures Trading Commission (CFTC) in America. In UK, the Financial Service Authority is the regulating body Forex brokers.
Initial Deposit: Keep the initial deposit to less than $500 and for this you would need to find a broker that allows the low deposits. Moreover if you have less trading amount say $2000 or less than starting off with micro lots is a good idea. Make sure that your broker allows this feature.
Currency Pairs: Choose a broker that offers trading in currency pairs that you are interested in. You should ideally have a wide range of selections in currency pairs as each has its own breathing pattern
Rollover Interest: It is important to take stock of facts like whether the broker provides rollover interest whether debit or by credit, especially for traders that have to hold overnight positions. While some brokers have both the facilities others may offer only credit rollover interest
Services Offered: What services does your Forex broker offer? Does he offer 24 hour customer services allowing you to take advantage of the Forex trading hours for different currencies? Check whether your calls are answered quickly and how ell your queries are handled. News feed, market commentary and charting are some premium services that a good Forex broker should provide.
Leverage: Leverages offered by the broker whether it is a conservative 10: 1 or an aggressive 400:1 is an important factor while choosing the Forex broker.
When looking for a Forex broker, you need to check certain points. These include:
Registration: Where is the broker registered? The Forex brokers have regulating authorities like the NFA (National Futures Association) of which your Forex broker should be a part of. Moreover he needs to be registered with the Futures Commission Merchant (FCM) and the Commodity Futures Trading Commission (CFTC) in America. In UK, the Financial Service Authority is the regulating body Forex brokers.
Initial Deposit: Keep the initial deposit to less than $500 and for this you would need to find a broker that allows the low deposits. Moreover if you have less trading amount say $2000 or less than starting off with micro lots is a good idea. Make sure that your broker allows this feature.
Currency Pairs: Choose a broker that offers trading in currency pairs that you are interested in. You should ideally have a wide range of selections in currency pairs as each has its own breathing pattern
Rollover Interest: It is important to take stock of facts like whether the broker provides rollover interest whether debit or by credit, especially for traders that have to hold overnight positions. While some brokers have both the facilities others may offer only credit rollover interest
Services Offered: What services does your Forex broker offer? Does he offer 24 hour customer services allowing you to take advantage of the Forex trading hours for different currencies? Check whether your calls are answered quickly and how ell your queries are handled. News feed, market commentary and charting are some premium services that a good Forex broker should provide.
Leverage: Leverages offered by the broker whether it is a conservative 10: 1 or an aggressive 400:1 is an important factor while choosing the Forex broker.
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