Things To Consider When Choosing a Forex Broker

June 29, 2013 2:05 pm

best_forex_brokersChoosing a Forex broker can be a tricky task, especially if you don’t have enough experience in the Forex market. Thankfully, there are many online reviews of different brokers, so you can easily learn more about their pros and cons, and determine which broker best suits your needs. There are many things that you must pay attention to when selecting a Forex broker, and in this article we’ll tell you about six of the more important characteristics of every Forex broker.
Safety and Security

Forex brokers operate with your money, save your credit/debit card information, bank account details and more personal information that shouldn’t be seen by other people. This is why you must see if the broker you’ve chosen is licensed and regulated by a reputable regulatory body. Depending on the location of your broker’s headquarters, it may be regulated by one of the following regulatory bodies:

The NFA and CFTC for brokers registered in the US
The FSA for brokers registered in the United Kingdom
The ASIC for brokers located in Australia
The SFBC for brokers in Switzerland
The BaFIN for brokers in Germany
The AMF for brokers registered in France
If your broker isn’t regulated, then we advise you to stay away from its services.
Transaction Fees and Taxes

Most brokers will tax you for every transaction in and out of your real money account. You’ll also have to pay a commission for most trades (usually in the form of spread). This is why you should look for brokers that offer a lower spread, but keep in mind that sometimes unregulated brokers are the ones that offer the best conditions. As we mentioned earlier, stay away from these brokers if you want to be sure that your money is safe.

Top Forex Brokers for 2013

Depositing and Withdrawing Money

If a broker is good and reputable, then it won’t cause any troubles when you try to deposit/withdraw money from your account. Read some user reviews and see if any current or past traders had problems withdrawing money from their accounts registered with your broker.

Trading Platform

Using the right trading platform will increase your productivity and allow you to be better and Forex trading. See which platforms are used by your broker and determine which one best suits your needs.

Order Execution

Delay is something that every Forex trader hates, so see how quickly your broker executes trades. A delay of 1-2 seconds can cost you a lot of money in certain situations. So it is in your best interest to pick the services of a broker that instantly executes all trades. This is especially important if you are a scalper, because your strategy completely relies on quick trading.

Where to Trade

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