Choosing Forex broker is the very important decision you are going to make and may affect your attitude towards and earnings through Forex trading. The basic points you need to check before registering with any broker are discussed below.Registered Brokers.
When you take a decision to register with Forex broker, first thing to check is Whether the broker is registered with appropriate Authority of the Country. These authorities supervise and regulate the broker's operations. Forex is unregulated Market but Brokers are regulated themselves. Below is given the list of Regulatory Bodies of some Major Countries.
Australia | ASIC |
Canada | BCSC, CIPF, OSC |
Dubai (UAE) | DMCC, DGCX, DFSA, ESCA |
Denmark | Danish FSA |
United States | NFA, CFTC |
United Kingdom | FSA UK |
Hong Kong | SFC |
Japan | FFAJ, FSA Japan |
Sweden | Swedish FSA |
Switzerland | SFDF, ARIF, FINMA |
Spain | CNMV |
- Initial Deposit
Opening an account with Broker calls for how much of initial investment is also an important factor to consider. Asking for more than $1000 as initial deposit makes it suspicious. The initial deposit of most of the leading authenticated brokers start from $300 to $500.
- Customer Service
Efficient customer service plays a crucial role in your trading career as it solves your problems quickly. Forex is 24-hour open market, hence you require a broker that provides round the clock customer service. So Whenever you encounter any problem with your account, Order execution etc, your queries need to be answered on time with right and quick support. If not, it is quite frustrating than you can imagine. Check out the Broker website and observe the time taken by representative to chat or answer your queries, just for a quick test.
- Trading Platform
Trading platform provided by a Broker should be user friendly and should facilitate easy upload of technical indicators. Preferred Trading platform for me is MT4 and I find it quite easy to use. Moreover, technical indicators for MT4 are widely available & can be uploaded easily. Whichever the Trading platform you use, get acquainted with all of it’s important necessary features and you must feel at ease while using it.
- Order Execution Process
Make sure that your Broker is providing Straight through processing and uses Direct Market Access Model. This ensures that the order you place is sent directly to the market for execution & your Broker is not taking the position opposite to your trade or acting as market maker.
- Spread
The spread provided by the Broker is fixed or Variable is again crucial factor. Variable spread is generally not wide as fixed spread but during News events or major events, variable spread can become too wide. knowing your trading style beforehand is quite helpful whlile making a decision on spread.
Always start with Demo trading account and practice till you become confident of trading with real money. Your Broker should support you for this and should not put any time restriction. While registering for real money trading account, Broker should ask for your credentials, if not, be suspicious. Happy Trading...
