The fact that there are so many forex brokers makes it hard to decide where to open an account.
It is hard because most of the foreign exchange brokers have different benefits, Imperfectness's, expertises and features.
Here are some tips to be weary of.
First of all: Is the Currency Trader (Forex Broker) registered?
This is the first question you have to ask yourself is.
There must be no uncertainty about the answer of this question..
All registered currency traders must forward financial reports to their government, and when they fall short they can loose their license. This enforces currency brokers to keep crystal clear financial reports.
The Forex brokers must have a license from their regulatory government, for example, currencybrokers based in the United States must have a license of the CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association), German based currency traders must be registered by the FDF (German Federal Department of Finance) and so on. Besides, when a foreign exchange broker (Forex Broker) is registered, investors are allowed to battle any resolution, which means an increasing of the investor protection.
Second issue where you must be aware of are the trading conditions.
This item refers to the prominent aspects of the trading platform and the trading conditions with the chosen forex-exchange broker.
The most crucial factors of the trading condition are:
Platform execution - Currency trading execution refers to how quick and steady are the acts of trades. Some forex brokers ensure fast and obvious executions during standard market conditions.
Safety of capital - You need to be certain that your trading capital is set aside in a segregated account or at least insured.
Fractional trading - Some foreign exchange broker allow traders and investors to buy or sell on a fractional basis, as an alternative of trading full lots "200,000 units" or "600,000 units", they allow you to trade "326,690 units" or "651,822 units". For investors and traders that are laying on the line for a certain percentage of their balance on each trade this is very helpful.
Spread - Without a doubt the smaller the spread on currency pairs the better the conditions are for traders and investors.
