So you are fascinated with trading in getting involved with the international Forex Trading market. If you are a beginner, you might want to consider the guidance of a broker before entering into the forex market. You do not want to go into the market without knowledge. Or, this will be a prescription for a disaster.
A broker is someone who is knowledgeable about the market and its mechanisms. This person will be able to give you advice that will be suitable for your particular situation. But how do you know which broker to choose from?
1. First you can start doing your homework via the internet by visiting several of the Forex brokers websites to find out the "promises" that are contained in their advertisements. Next you want to, continuing on the internet, go to many of the review sites that are now prominent on the internet. Yes, there are review sites that analyze the "promises" and find out what the broker might not be telling you. The review sites will be able to point to you the fine print of the promises by the forex broker.
2. You must be sure, to the best of your knowledge, that the broker is honest. You can check the brokers reputations by the seal of approval of the country in which the broker operates. In many countries, especially in the developed ones, there are governmental organizations that can help you out.
You might want to check with your friends, families and acquaintances.
3. Further on the broker's reputation, you can go to Forex Trading forums. If you go on Google.com and type "Forex Trading + Forums", you see a number of forums where you can ask questions, exchange ideas and probably read about forex brokers to stay away from and the ones that have the accolade of several individuals.
4. You need to know what commissions the broker is charging, if any. The commission should be based on the bid and ask price at the conclusion of a trade. There are also some traders who do not charge any commission but a set fee. You will need to consider the pro and con of paying commission as opposed to a set fee. You will also need to compare the commission rate and the kinds and types of work the broker will be doing to justify the payments.
5. You also need to know what the initial capital outlay is. There are wide varieties of initial account requirements. Initial requirements can range from $100 to $10,000.
6. You need to find out what kinds of currencies these brokers are dealing with in the forex trade. If you have a specific requirement in terms of currencies and the countries you would like to deal with, a forex trade broker will be able to assist you.
7. You would also need to find out how much customer care the broker offers. Along with the customer care is the kind of platform the broker is using. Any worthwhile broker should be able to provide assistance 24 hours a day, 7 days a week. Additionally, you need to investigate the brokers' willingness to solve your particular problems, when they arise.
