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Tips for Choosing a Forex Broker

Getting the right Forex broker can mean the difference between successful Forex trading and failure. Your Forex broker is part of your team of value advisors in your Forex business. Here are a few basic tips on choosing the best possible Forex broker for you:

Transaction costs — it should go without saying that every Forex trader needs to have the lowest possible transaction costs. In the case of Forex trading this is typically the spread. The spread varies widely from broker to broker so it pays to shop around. This is especially important for short-term and higher frequency traders such as Forex Day traders. In Forex day trading small differences in the spread can mean the difference between trading profitably and trading at a loss.

Trading platform — your trading platform is going to be your workhorse in Forex trading. Your broker supplies you with trading platform typically and downloadable format. Once you install the brokers trading software and fund your account you can begin trading online.

Most every Forex broker offers a free demo account. The main purpose of this account is to give you an opportunity to see how their trading platform will work in real time. It is suggested that you get free demo accounts from several brokers in order to check out their trading platforms. In this way you’ll be able to compare and contrast to determine which platform you are the most comfortable with. It is not advised that you go with a broker does not allow you to use a free demo account. You want to sharpen your skills and eliminate any mistakes without costing yourself any money.

Miscellaneous fees — always check the website of any Forex broker you may be interested in and investigate their fee structure. Believe it or not there are actually Forex brokers who charge you a fee for sending you your own money.

Order placement methods — it is always advisable to have an alternate order placement methods besides your online trading platform. You may one day be in the middle of placing an order to limit your risk when your Internet connection suddenly disappears. For this reason many online Forex traders also have an alternate method of connecting to the Internet such as wireless broadband. When you do not have this option is always nice to be able to pick up the phone, call a toll-free number, and place your order.

Customer service — evaluating the level of customer service is one of the very first things that should be done when choosing an online Forex trading broker. The first step is simply to go to the broker website and look for their contact information. From here you want to find a forum or an e-mail address and simply send them a simple and easy to answer question. Your objective here is not necessarily to get an answer to your question but to see how quickly the broker response to your question. This can sometimes tell you a lot about how quickly they may respond to you once you become a customer.

It makes install so just pick up the phone and give the broker a call and have them answer any questions you may have.

As you can see there are a number of quick and easy ways to evaluate Forex brokers. It’s also a good idea to check with the commodities futures trading commission or CFTC for additional information about brokers. There you will find things such as if the broker is meeting minimum capital as Asian requirements or had any complaints against them. Having this information as well as following the tips will put too well on the road to find a Forex broker that’s perfect for you.

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