Searching for the right Forex broker is tough. Since a Forex trader's career is dependent on maintaining a professional relationship with a good Forex broker, you might as well spend some time researching the broker industry.
Without Forex brokers, a trader will have no access to the Forex market. Therefore, Forex brokers are the business partners of every Forex trader. One cannot exist without the other. Brokers will keep you informed on the latest changes in foreign economies so that you can decide what to do with your trading accounts.
What is the broker's minimum account size? If you have a huge capital to start with then this may not be a concern for you however if your capital is limited, it is important to check this out because some brokers will only allow a minimum account size of three to five hundred dollars while other brokers require at least ten or even a hundred thousand dollars.
What currency pairs are available? Most brokers now have a total of 20-26 currency pairs altogether. If a broker doesn't have all the currency pairs that you would like to trade, then it could affect some really good trading opportunities that come up now and then.
What trading platform software is used with this broker? A trading platform is a software that you use to enter a trade. Keep in mind that a trading platform software is not necessarily the same thing as a charting software. Nowadays, Metatrader is very popular and a lot of brokers offer Metatrader.
What is the company's financial strength? At this point in time, several brokerage firms have gone out of business, filed for bankruptcy, or have undergone audits that have shut down access to their customers' accounts. It is important that your broker will remain in the business for years to come. Also, make sure that your broker is registered with the National Futures Association, the Commodities and Futures Trading Commission, the Securities and Exchange Commission or a similar agency in your country.
What seems to be the broker's reputation with other traders? There are many immature traders and since you already know that most traders will lose, you don't necessarily want the opinion of most traders. You can check broker's reviews online or better yet know what successful traders think of a specific broker.
Since we cannot trade Forex without a broker, just make the most of your broker relationship and let them know if there is anything you require or any aspects of their service that you do not approve of. Let them know. Make use of your Forex trading broker representatives. Call them, talk to them. Get them to explain things to you. When it comes to understanding how a Forex trading account works, the person that you need to be talking to is your Forex broker representative.
