subject: Finding A Forex Dealer: 5 Questions To Ask [print this page] Anybody who wants to get involved in forex trading needs a forex dealer, also recognized as a forex broker. You need to hook up with a business which will give you access to the live marketplace via their account management program and trading platform. It is an important choice and in some cases can mean the distinction in between profit and loss in the forex market.
But just as with systems, there is no perfect forex broker that suits everybody. So here are 5 questions that you simply should ask yourself when you are selecting a forex dealer.
1. Are They Right For Your Degree?
You will find three basic levels of investment in forex accounts. They go from micro accounts exactly where you'd generally invest a couple of hundred dollars, via mini accounts where you need a few thousand, to standard accounts where you would be investing $10,000 or more.
Should you only have a little quantity to invest, obviously you need a broker that provides micro accounts. If on the other hand you plan to come in at a high level, you'll not do your self any favors by joining a service that is aimed at the extremely little time trader.
2. Is This An Authorized Forex Dealer?
An authorized forex dealer is a company that is approved by certain regulatory bodies. They're screened prior to acceptance and need to follow a particular code of practice. You aren't most likely to be scammed by an authorized broker and you might have some protection if the business goes out of company. In the USA, the main authorizing bodies are the NFA (National Futures Association) and also the CFTC (Commodity Futures Trading Commission)!!! Dealers based in other countries should be members of similar bodies in their own country.
3. Are The Expenses Reasonable?
Not only the quantity but the basis of costs can vary from broker to dealer. Some merely charge a spread, that is, an imposed difference in between the bid and ask price of a currency pair. Spread is different for different pairs, so look at the pairs that you are most likely to make use of. Also check whether you will find other costs, such as a fee per transaction.
4. Is the Platform Simple To make use of?
At this point you can sign up for a demo account and check the platform. Check the technical analysis tools that are obtainable. Does your program depend on an indicator that is not provided? Do they offer a forex calendar or news alerts? When you come to place an order, is everything clear and simple? Confusion at this point could lead to errors.
five. How Quick Is the Response From Help?
When you have a live account and are trading for real, you'll need help fast if anything goes wrong. Once you've the demo account set up, try asking a technical question to test the speed and helpfulness of the response from the forex dealer's support desk.
