Forex Broker Checklist
Use This Checklist When Evaluating a Forex Broker
Always score your broker candidates as a plus or minus before opening an account. The brokerage company should have positives for each criteria.
- Should be regulated by home country
- Pip spread of 2 to 3 pips
- Performance of fast order execution
- Should be easy to contact: readily available by phone and email
- Should have free demo accounts available
- Should have a comprehensive and customizable platform desktop available for charting
- Performance as a broker should be recognized by awards
- Should have presence in all major global financial centers
- Should offer leverage of at least 100:1
- Should have mobile trading software available so that trades can be observed away from desk
When you choose a forex broker, pay attention to how much they take in commissions. This means that your broker will take a part of your profits, or of any amount that you invest. If you have found a broker with rather high commissions, you can probably find a cheaper way of trading.
If you are a new investor in the highly volatile and constantly changing foreign exchange market, it is in your best interest to conduct each and every trade with a stop-loss order. A stop-loss order alerts your broker to automatically sell your stock when its price falls below a target profitability level.
Forex trading brokers are people trained in the foreign exchange. They understand in full, how it works and what they need to do to get the most out of it. Having a broker can mean that you make more money, take less losses and have less work to do on your own, when it comes to trading.
Customer service is something that is overlooked with a software or brokerage service, but you will need to find a customer-friendly service. Most Forex traders are beginners who have a lot of questions. Finding a broker or software system that offers no help beyond what is advertised, is a real let-down. There are great, helpful services out there, so make sure you find one.
It is critical that you learn, and understand about forex trading, before you begin trading yourself. This information in the above article is an excellent starting point; however, you have to understand that there is much more forex information that exists. Because of this, you should always be aware of any new methods to help with your success.
Disclaimer: Be advised this is not recommendation of any broker but a means to evaluate brokers. Independent confirmation should be made before selecting any broker.