The competition among the different Forex brokers has risen sharply during the past few years and it has really become too difficult for a newbie to pick up a broker of his choice. The new brokers do not have any idea to where to start with trading online and that really needs a help. Well, the good news is that we are here to help them out! The selection processes for good brokers is simple and let us have a look on the process of selecting the broker of your choice.
Perform a thorough research on the available Forex Brokers Here are the few important researches you need to know when finding good Forex brokers. Is your Forex broker registered with a reputed regulating authority? If your broker is based in USA, check if your broker is registered with National Futures Association (NFA) or Commodities Futures trading commission (CFTC). If the broker of your choice is not registered with any regulating authority in the country it is based, think twice before registering with that broker.
What is the type of broker? Dealing desk or non-dealing desk broker, fixed or non-fixed spreads broker. See how much leverage the broker is offering. Too much leverage can be a high-risk factor. Check the initial capital required by the broker to start trading online. If you do not have much savings to invest in Forex trading online, you really need to search for a broker offering relatively small capital investment. Does the broker offers premium services like Forex charts, Forex news feeds, market commentary, signals etc.?
Compare different brokers Take a list of all the requirements explained above and compare different brokers based on these research areas. Open trading online demo accounts and ask your questions Pick some Forex brokers who meet all your criteria and open demo accounts with all of them.
Demo accounts help you to trade with non-real money and you can trade real time without losing any real money. This feature is generally available with all Forex brokers and you can easily open a demo account to practice trading online and test the quality of service. Learn all the different features offered by the Forex brokers through demo account and check every aspect of their services.
Do not be afraid to ask questions from the customer service team of the broker you have selected. If the customer service of the broker is excellent, they will answer each and every question of yours to satisfaction. Know about the policies of the brokers and ask questions if any of the points are unexplained. By testing with a demo account and checking the quality of the customer service offered you can really take a big step in selecting the best broker of your choice.