Selecting the right forex broker can be one of your most crucial decisions when it comes to trading. It could mean the distinction between success and failure on the Forex Market. The selection of a Forex broker involves a range of considerations. Helpful hints?
Regulations on Safety of Funds
Is the money of clients insured, and if so to what degree? The regulatory environment in which many online brokers operate is strict. This regulation comes from the regulators of each country where brokers have been licensed. Forex regulation can be more rigorous in some countries, particularly those located offshore. Australia, Canada Switzerland United Kingdom United States are countries which have dedicated monitors of forex brokers. You should always check which regulatory agency the broker belongs to. Do not sign up before contacting them. It is important to check if the online broker you are considering has been licensed and regulated.
2) Execution of Trade
Check out the forex broker’s business model. What kind of business model do they have? For instance, are you more interested in a communication network electronic or a broker that makes markets? The broker offers automatic trade execution? In the absence of automatic execution, what is an average time for order fulfillment? Are they offsetting client trades on a regular basis? You can only trade so much without getting a price. You should ask these good questions of a potential broker.
3) Trading Platform
Are you able to download the platform or does it have a web interface? It should be able to deal with a high volume of trading during an active market. Although a particular platform may perform well on normal business days, the only way to be sure of its performance on busy days is to see it live. Do they offer order types that are important, like stop and limit orders or OCO? You should also ask how many currencies pairs are available to trade, and what services the platform offers. You should be able to access charts and the latest news affecting the forex markets, along with a demo trading account.
Account Size
You cannot adjust the amount you trade with some brokers. Additionally, some offer standard and mini accounts for trading and have minimum opening balances.