Tips on Selecting the Right Forex Broker
This will be the only way that you will get to see their work without losing money. How you do on a practice account will determine how you will do on a live account. This type of account allows for making mistakes.
When looking for the correct type of broker for your needs it is vital you do your research so you know what to look for. If your not sure, here are some questions to ask yourself. Is this dealer registered with the regulating authorities? How long has their business been open? Also, check with the Better Business Bureau. If the agent is not registered with the National Futures Association or the Commodity Futures Trading Commission, then you will definitely not want to sign them. Another question is does the broker offer non fixed or fixed spreads? How widespread are these spreads? This question is asked for someone who wants a quick profit. Also how much leverage will they give you? This will give you an idea of how much money you are going to have to invest. Some dealers will not even touch anything two thousand or lower. Last question, Do they credit or deduct daily rollover interest?
Next, after all the questions, you will want to do a comparison to see which agent’s rating is the best for your needs. Make sure you check fees to see if they are fixed or variable.
Finally, pick at least three brokers that fit your criteria and open up demo accounts. Start trading in different market areas. Learn all the features of the trading platform. Most have great customer service, so don’t be afraid to ask questions. When you have your strategy ready, then it is time to the live account. Start off small, don’t dive in over your head.
With an online intermediary, you will be able to do a bit more research without asking the questions face to face. This will allow you to see what they have to offer without any prior commitments. Also, online you will be able to read reviews from other customers. This will give you an idea of whether you even want to do business with them. A review can make or break a company. One bad review can turn anyone off from that company. Most brokers who have websites are generally a trusted company with a good reputation, with the business to back up their reviews.
You will also want one who offers a charting package. Most will offer an education tool that will help assist a trader in the Forex market.