Forex Trading Tips: Choosing a Broker06/26/12
Trading on Forex requires choosing a broker that will coordinate your activity and act as a guarantor of your capacity. Making a correct choice among such a big number of market offers, especially if you are a novice in this sphere can be rather difficult. A few Forex trading tips regarding selecting a broker may help you to manage with this task that can be decisive in your trading career.
Each broker takes a commission for his service – this is what he profits from. Some of them offer fixed rates, some use variable rate policy and some of them prefer percentage commission from spread. Don’t catch for low commissions as they can be the only advantage of this or that broker, and the value of disadvantages can exceed it significantly. The most popular Forex trading tips advise traders to pay attention for non-commission factors like broker’s trading platform quality and service range.
You should find out how well is the broker’s agency capitalized and what kind of reputation and relationships with different banks the broker has. Reputation in finances is definitely an important indicator. A broker that does big volume monthly is usually given with tighter spreads but provide stability in trading. If you want to act with minimal risk, join big volume brokers.
You should be sure that a chosen broker provides all the services you need and gives you enough support at the beginning of your activity. A broker is interested in getting money from each client, and if so you should be provided with all necessary for successful trading.
Don’t forget whether a broker has proper certificates like FSA certificate for UK-based brokers. This is a guarantee of his service quality. Beginners usually face the problem of minimal capital allowed to start trading. Not all brokers allow trading with small capital fund, and this can be a problem.
One of the most useful Forex trading tips for broker seekers is opening a demo accounts at a couple of brokers’ platforms you choose and comparing the services in practice. Such approach will show all pros and cons of the brokers you chose.