These days there a many Forex brokers in the retail market with each one of them claiming to be offering the best service. Sorting them out to find the one that suits your needs best can be daunting. Let’s look at what you should consider when trying to find the best Forex broker.
1. Regulatory Compliance
A reputable Forex broker will be a member of all regulatory organizations in the futures industry. The regulatory organizations develop rules and programs to protect the integrity of the market, traders and investors. A Forex trader having a fancy looking website doesn’t warrant that they’re a member of the regulatory organizations. Due to the concerns regarding the integrity of the brokers and the safety of your deposits, it’s important that you open your account with the duly regulated firms.
2. Initial Deposit
Another important factor that you should consider when deciding on the best broker is the initial deposit requirement. A lot traders prefer starting their careers by risking small amounts, this leads them to seek brokers offering lower initial deposit requirements. These reasoning has it’s merits but the initial deposit requirement shouldn’t be the biggest consideration unless you only have a small amount of capital to risk. Some brokers with excellent services keep their initial deposit requirement relatively high in order to attract only serious traders.
Spreads should be an important consideration for Forex traders. A spread represents the amount of your money entering your broker’s pocket regardless of the profit or loss you’ll be making while trading. It’s sensible that you ensure that your broker offers the most competitive spreads in the market. Here is a video explaining the spread in Forex trading.
4. Currency Pairs
There are many currency pairs available for trading, but only a few get most of the attention and therefore trade with the greater liquidity. The major currencies are, US dollar/Japanese yen, the US dollar/Swiss franc, the British pound/ US dollar and the Euro/ US dollar. A broker may be offering a great variety but the most important consideration is whether they offer the pairs in which you’re interested.
5. Customer service
Forex trading is a 24/7 affair, so the customer care should be available at all times. It’s also important that you consider the ease at which you can reach a live person rather than the usual time consuming and often frustrating automated attendant. A quick call to a Forex broker can give you an idea on the efficiency of the customer service, the wait times and their ability to concisely answer questions regarding your concerns.