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.
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.
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.
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