subject: Forex Broker - What Should You Look For When Finding One? [print this page] Your experience in Forex trading is going to depend a lot on the Forex broker that you're working with. As with anything else, there are good ones and bad ones. It can be difficult to figure out which are which, especially in the beginning.
The good news is, there are many to choose from. The problem is, this can also make it more difficult to sort through all the various options. You need to find one that you feel you can trust with your money. This means not only that the broker is honest but also that trades will be handled fast so that you don't inadvertently lose money.
One thing to look for is whether the broker is regulated by one or more agencies. This lets you know that an objective company is looking over the business to make sure that it's operating with integrity. Another thing that's important is how your personal data is received as well as stored. Transfer of information should be encrypted and account information should be stored safely.
Each Forex broker can differ in regard to fee structures as well. Some charge commissions or fees for every transaction that you make. The way that theses fees can be calculated can differ. Some fees are calculated on a per transaction basis while other brokers may give you a volume discount. There may be additional fees such as for deposits and withdrawals, so be sure that the fee structures are clear to you.
You will also want to be sure you know exactly what each broker handles. Most will at least handle the basic types of orders, while others may offer more specialized ones as well. You'll also want to know that they handle all the currency pairs you might be interested in, as well as any other relevant commodities.
A minimum deposit is usually a requirement to get started, and the amount that you begin with may dictate the services you receive. There is often a sliding structure depending on whether you want a demo account to practice, a new trader's account or a standard account. You will need to be clear on what you want as well as what is offered before actually sending your deposit.
These are just some of the things to look for. You should also know how easy the broker is to reach if you have problems or questions. Some offer more personal support, often desired by beginners than others. If this is important to you, be sure to know where each Forex broker you're considering stands, before making a decision.
