The foreign exchange market is the world’s largest financial market and trades an average of $ 4 trillion dollars every day. In order to foray into this risky yet rewarding market, traders are needed to hire a suitable forex broker to conduct a trading activity. Here some suggestions you can use:
Before hiring a forex broker, you must make sure he is certified and registered with the U.S Commodity Futures Trading Commission and is a member of the National Futures Association as a Retail Foreign Exchange Dealer and a Commission Merchant. It is important to check this as your money cannot be put at risk.
You must check the account offerings of a forex broker and see if they suit you. Leverage and Margin offered by the broker should be taken into consideration and used carefully as they have the potential to make you or break you. One can purchase a share for a micro forex, but leverage can allow you to hold a much higher position with a higher amount.
Different brokers offer different options of initial deposits. It is necessary to assess these options and make sure they provide you what you require. Micro, standard and mini accounts are offered by most brokers.
Attention must be paid towards the account funding options that the broker allows. It could be through credit card, PayPal, bank check or through wire transfer. A fee may be charged by the broker for providing these services.
Different dealers would want to deal with different currency pairs. The major currency pairs being the U.S dollar against the Euro, British pound, Japanese yen and Swiss franc. The trader may want to deal in currency pairs other than these and so the trader needs to make sure that that combination is offered by the broker.
Before selecting a broker, the trader must be aware of the quality of his customer service. With forex trading going on all day and night, it is necessary to consider the availability of a broker’s customer support. You could give the broker a call and hence come to know about their company details, leverage, spreads, experience and their trade volume.
An attractive and clear trading platform will enable traders to forex broker better. A well designed platform will not only make it easier to buy and sell shares but will also leave lesser room for mistakes that can occur during trading.
Since forex trading can be ventured into with a minimum of $5, there are many traders who want to invest in this growing market. But in order to secure yourself and your investment, it is extremely necessary to select a good forex broker. These above suggestions will surely help you find a good broker.