Forex trading brokers are everywhere on the internet today. And since it is so easy to put up an ad, chances of you running into a scam or an amazing good trader are equally high.
A Forex trading broker is an individual or company that holds your money to buy and sell based on your decisions. And unless you want to lose your hard earned money in a heartbeat, you want to do some research before deciding on a Forex trading broker.
Here are 3 tips to aid in your research and decide on your Forex trading broker.
1. Is the Forex broker regulated?
Just because a broker is available does not mean they are regulated. If your Forex trading broker is based in the United States, he should be registered as a Futures Commission Merchant with the Commodity Futures Trading Commission and a National Futures Association member. To verify the credentials of a particular broker, simply phone NFA at (800) 621-3570.
2. Company Customer Service
Trading happens 24/7, hence you need a Forex trading broker that provides a 24-hour support help desk. Try contacting the broker through phone, email or live chat with any questions. The broker should be knowledgeable and able to respond quickly to all of your questions. A good Forex broker should provide you with speedy and satisfactory answers to all your questions. For any reason, if he fails to do so, move on to the next Forex broker on your list.
3. Trading options
Services provided differ from each Forex trading broker. Does the broker offer the minimum 7 major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD). Are their operating hours align with the hours of operation of the global Forex market? Does the broker take a commission and a spread? Make sure the spread is small enough to compensate for the commission. What is the minimum size trading offered by your Forex trading broker?
Your last final tip is to have a list of Forex trading brokers and run them through a checklist of criteria you deem as a must. This would allow you to narrow down and find your ideal or at least second best Forex trading broker.