Skip to main content

Choosing the Right Forex Broker - The Vital Qualifying Parameters

By spending a lot of money on advertising campaigns, many Forex brokers try to make the investors believe that they are above the rest. Of course, you will need to register with reputed brokers in order to make long-term benefits. However, you cannot blindly believe the advertisements, just because they say so.

Ideally, the secret of any trader's success will not be solely dependent on the platform they choose. It has more to do with their trading abilities, and the right attitude that is needed for success. The best method here is to select a broker by determining some clear guidelines, as per your specific needs.

Tips to select Forex broker

Affiliated with a regulatory body

Remember that you are going to invest thousands of dollars with the broker you choose. For the safety of your money, it is necessary to select a credible broker.

One way to check their credibility, is by finding out if they are members of some regulatory body. If the broker is affiliated, then it means that they are serious about the business. Some of the major regulatory agencies are CFTC and NFA from the United States, and FSA from the UK.

Trading platform features

The trading platform layouts might vary, but all of them will have a buy & sell button. It is necessary to ensure that the broker offers you correct rates, and a robust trading environment.

Necessary features to look for are commission, spreads, timeframes, major currency pairs, suitable indicators, tools, robots, and profit & loss sheet. The key to understanding any particular platform is by registering for a demo account, and using the features.

Deposit & withdrawal

The deposit and withdrawal from trading account must be smooth, without any hassles. Whenever you make profits, you must be allowed to withdraw the cash, if you wish to do so. More importantly, the withdrawal charges must be less.

Trading cost

Remember that you will have to pay commissions on every trade you place. In Forex, the 'bid price' minus the 'ask price' is the broker's commission, commonly referred to as the 'spread'. Basically, the commission must be low. This aspect may also depend on your kind of trading. For a position trader, tight spread is not a matter of concern.

User reviews

As a responsible investor, you must try to collect all the information on the broker, before deciding to partner with them. For making informed decisions, you can also check out some of the Forex trader review websites. Brokers with trustworthy track record will be rated better on those sites, but it important for you to ascertain the facts from multiple sources.

Customer support

It is always a good feeling, when you know that you can take immediate assistance from your broker, whenever you need. If proper communication link is unavailable, then you can possibly suffer major financial losses. Prompt customer support from the broker site will help you enjoy your trading experience, and also improve your chances of success.




Source by Mohammed Abdul Nadeem

Popular posts from this blog

The Basics of Cryptocurrency and the Way It Works

In the times that we're living in, technology has made unbelievable advancement as compared to any time in the past. This evolution has redefined the life of man on almost every aspect. In fact, this evolution is an ongoing process and thus, human life on earth is improving constantly day in and day out. One of the latest inclusions in this aspect is cryptocurrencies.Cryptocurrency is nothing but digital currency, which has been designed to impose security and anonymity in online monetary transactions. It uses cryptographic encryption to both generate currency and verify transactions. The new coins are created by a process called mining, whereas the transactions are recorded in a public ledger, which is called the Transaction Block Chain.Little backtrackEvolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming legible information into a code, which is almost uncrackable. Thus, it becomes easier to track purchases an…

Forex MegaDroid - The Trading Robot That Applies Two Trading Strategies

It is important for novice traders to gain the basic knowledge of Forex trading at the very beginning of their attempts. After you get the rough ideas of what those charts, tables and axis mean, then you should study in details about which trading style suits you the most. Currency trading involves completely different styles. People should opt for their own strategies, but basically there are two primary types of analysis: the technical and the fundamental. A few traders would choose one of the two, some will combine them, others just follow what the robot tells them. Forex Megadroid belongs one of the few automated programs that applies both trading strategies. Forex traders who choose to use technical analysis always base their analyzes on the currency market trend. They read charts and recognize the common patterns for the price movement. Different traders may employ various reporting system to make the analysis easy to read or update. For the users of technical analys…

Virtual Currency Games

Every little boy's (and many grown men's) dream of making a living by playing video games is edging closer to reality. The recent release of HunterCoin and the in-development VoidSpace, games which reward players in digital currency rather than virtual princesses or gold stars point towards a future where one's ranking on a scoreboard could be rewarded in dollars, and sterling, euros and yen.The story of the millionaire (virtual) real estate agent... Digital currencies have been slowly gaining in maturity both in terms of their functionality and the financial infrastructure that enables them to be used as a credible alternative to non-virtual fiat currency. Though Bitcoin, the 1st and most well known of the crypto-currencies was created in 2009 there have been forms of virtual currencies used in video games for more than 15 years. 1997's Ultima Online was the first notable attempt to incorporate a large scale virtual economy in a game. Players could collect gold coins …