There are many things to consider when you are picking a Forex broker. Of all the things to be concerned about, company reputation, excellent order execution and competitive spreads are the most important.
It is a good idea to make a checklist of things you want to know about the broker and their online trading platform.
First, find out if they are NFA registered. Only deal with reputable NFA companies. Research their reputation in the market. Contact them and judge how professional they are in their communication and procedures.
It is a must to try out their trading platform. Take a test drive with a demo account and trade like you plan to. Use it during peak and non-peak times and look for forex strength meter. Examine the data accuracy, the speed of execution, the charting. Is the data live? Are execution times speedy? Some applications will display live data but the trade execution is slow. Check for data lags during peak times.
Real brokers in the Forex markets make money from the spread. This is the difference between the bid and ask price. Find out if they offer fixed or variable spreads. Fixed spreads tend to be a bit wider than variable but they will not fluctate when the markets get volatile.
Something to watch out for is forex dealers who take positions opposite to you when you trade. These groups make money only when you lose. If you are a good trader using a dealer, often you will find they start putting up roadblocks to make you go away.
Read any documentation the broker provides before opening an account. Read it carefully. Look for any suspicious clauses. For example, make sure they don’t include a clause stating their quotes do not match the real market. If you find such a clause, move on.
Next, find out about their phone desk. We live in a wonderful online world but the unthinkable does sometimes happen. Internet access fails, accounts expire, power outages do happen. You never want to be in a position of having an open Forex trade and no way to close it. Can you get access to your trades 24 hours a day by phone? Do a test do ensure they can meet your needs.
Lastly, try to find out if they have a genuine concern for you as a trader to make money. Finding excellent brokers for the Forex is not a difficult task. Just make sure to ask the right questions, test drive an account, and make the choice that best fits you and your trading style.