In trading forex, choosing the best broker for your needs is crucial. This decision can determine whether you are successful or not in the Forex trading market. A number of factors should be considered before choosing a foreign exchange broker. More help?
Regulations: Safety of Funds
Do the funds of the clients are insured by any insurance and how much? Many online brokers must adhere to strict regulatory requirements imposed by countries that issue licenses. Foreign exchange trading is regulated more strictly in some nations than others. This includes offshore jurisdictions. Australia, Canada Switzerland United Kingdom United States and Australia have dedicated Forex brokers monitoring. It is important to check the regulator of your broker. Before you decide to sign up and trade, contact them first if they do not have the necessary information. The broker should be licensed or registered by a reliable authority if it is not.
2) Execution of Trade
Ask about the model that a broker uses. As an example, is the broker more of a electronic communication system or a marketplace? Do you offer trade execution automatically through the broker? Order execution is not automatic. How quickly does it happen on average? Do they compensate for client trades? How much money can you invest without seeking a broker’s quote? This is all good information to share with a future broker.
3 Trading Platform
Do you have the option to download or use a website-based trading platform? Does it have the capacity to deal with high traffic during rapid market movements? While a platform may work well on a normal day, its true performance during fast days will not be known until you have seen it. Are there important order options such as stop, limit and OCO Orders? The platform should provide information on how many currency pair you can trade as well as what additional services it offers. If you want to trade live, it is important that the platform offers charts as well breaking currency news.
4 Account Size
Some brokers do not allow the adjustment of standard lots traded. Some also have standard or mini trading accounts. They require an account minimum to open.