The first and the most challenging task for any novice forex trader is to find the right broker
. This is not an easy task at all. You will end up spending a lot of time on this and even then you will not be sure about the broker. You will only know the truth after working with that broker.
There are certain things that might help the novice traders. If you are a novice trader, then you can look for the brokers who have registered with the regulatory authorities. Remember that there is not central regulated authority but some regional regulatory authorities do exist in forex trading.
If you are choosing a forex broker who has registered with the regulatory authorities, then he will be under a watchful eye. It will not be easy for him to commit any kind of fraud. You will be in safe hands. The regulatory authorities will make sure that the brokers are not misrepresenting. The authorities will also make sure that your money is safe and you are receiving the profits that you have made from the trading. Moreover, it will show that the forex broker is a professional and that there is no lack of knowledge on his part. He will be the one who has chosen this as a profession and he will be more dependable and committed to the job than many others.
If a forex broker is regulated with certain authority, he will never hide this fact. You will know this on your first visit to his website. The brokers who have registered with certain authorities will give you proof of that without your inquiries. You will be able to find this information on their website easily.
Just remember one last thing about the regulated brokers that they will be registered with the authority from the country of their residence. If a broker operates from USA, then he should be registered with an authority from the USA. If this is not the case, then look deeper and you will find something wrong.