If you’re thinking of venturing into the Forex exchange market, the first step is to acquire the services of a Forex broker. Forex brokers offer investors the facility to conduct online Forex trading, as well as providing in-depth information on market trends. Some brokers even offer a comprehensive market analysis to their clients, making it easier for them to take appropriate trading decisions. Choosing the right Forex Broker makes all the difference to the extent of your success in the Forex market.
Forex Brokers: Selecting the Right One
The foreign exchange market has countless Forex brokers willing to offer their services to investors wanting to benefit from the numerous profit-making opportunities presented by the market. However, each broker offers different services and competencies. And, the kind of Forex broker you select would shape your trading career and define your success in the market. Thus, it is critical to undertake some research and analysis before starting your relationship with any one broker. The first step in the selection process is forming a list of Forex brokers that appear suitable to you and meet your preferences in terms of location and size. Once your list is ready, check out those Forex brokers against the following criteria:
Financial Backing: Forex brokers need to provide investors high leverage. This means investors can open positions involving large sums of money, without having that kind of capital in their trading account. Brokers can provide this facility to their clients only if they have the backing of a reliable financial institution. Thus, ensure that the Forex broker you select has the appropriate backing.
Registration: Forex brokers need to get registered with the Futures Commission Merchants (FCM). A broker also needs to be regulated by the Commodity Futures Trading Commission. Check which Forex brokers in your list have the license from both these societies.
Spread: The spread offered by a broker defines the amount you would be paying to the broker for each transaction. Thus, select the broker who has a lower spread.
Account Types: The extent of capital you plan to invest would dictate the type of account you will open with a brokerage. As an investor, you can choose a mini, standard or macro account. For a mini account, you need to make a minimum deposit of $200, while for a standard one, you may need to deposit about $1,000 with your broker. Check whether the Forex brokers you are considering provide the facility of a mini account.
Platform: Every broker offers a platform that enables investors to receive information such as live quotes, graphs and charts, open positions, net exposure and current profit and loss status. Check whether the Forex brokers in your list are offering this data. Moreover, ensure that the technology offered is user friendly and enables you to carry out transactions fairly fast.
A good Forex broker would also provide you with all the available market research and tools to help you take the best possible action. Apart from looking out for the above criteria, talk to other investors about the reputation of the Forex brokers you have finalized. Check to see if the broker has ever been suspected of following unethical actions, such as hunting or sniping. easyMarkets is a leading brokerage firm in the global Forex market and offers an innovative online Trade facility that enables traders to easily participate in the Forex market. easyMarkets also offers personal technical support and Live training services that make trading in Forex a pleasant experience.