Gaining access to the Foreign Exchange Market is an easy enough task in itself, but finding the best forex brokers for the job can require some research. A forex broker is a middleman that matches up buyers and sellers for foreign exchange transactions. Brokers serve as agents of the customer in the foreign exchange market by seeking the best price in the market for a retail order.
Finding the best forex brokers
A good place to start when finding the best forex brokers for you is to look at the initial minimum investment. Forex Brokers such as Trading Point allow a minumum investment as low as $1, where as MIG allows a minumum investment of $5000. There are a multitude of forex brokers all competing for your business, so finding a minimum investment that fits your needs should not be hard. Knowing where you want to begin with your investment should narrow down the choice of the best forex brokres for your needs.
Next, to find the best forex brokers for you, understanding the platform in which the broker trades is very important. One thing to look for in the trading platform is how user friendly the platform is. A beginner in forex markets should find a platform that is easy to use and understand. Since different best forex brokers use different platforms, it is important to find software that is easy to use. The number of trades allowed can be pertinent depending on how active you plan on being in the market. A number of the best forex brokers also issue bonuses, depending on your investment which can be substantial. Many best forex brokers also offer personal coaches who can help to steer you in the right direction, very important for the beginner venturing into the forex markets. Of course, you will want to be sure your best forex brokers are regulated and the platform is able to trade from the United States.
When choosing the best forex brokers, looking into the features for each broker will give you a good idea of what you will be paying for the services. Most brokers don’t charge a commission, but they are compensated for their services through the bid/ask spread. So, if you’re looking for the best forex brokers to open a Forex account with, it’s important to delve into their detailed features and policies as well.
One of the most important features to look at when choosing the best forex brokers is how fast the trades are made. Since we trade in a spot market, the immediate execution of a trade is a must. A broker that will sit on a trade rather than executing it can cost you money as you will be trading against a different market than when you initiated the trade.
Another important feature are what currencies are available. At the least each of the seven major forex currencies should be available to trade. The major currencies are the American Dollar, Canadian Dollar, Swiss Franc, Euro, British Pound, Japanese Yen, and the Australian Dollar.
A good way to narrow down the best forex brokers for you is to open a demo account. Most brokers offer free demos in order to let you “test the waters” so to speak. You should feel comfortable with the demo before proceeding farther.
Now that you have looked into these other facets of choosing the best forex brokers, a very important but often forgotten facet is the customer service. The forex market can be very volatile and much of it has yet to be standardized. Especially true for a novice into the forex market, many questions are likely to come up, so having an intelligent and staff ready to answer your questions is a must.
The best forex brokers should have customer service available by phone at any time, as well as email, and live chat. I good practice in choosing the best forex broker is to call and speak to a couple different representatives regarding their offerings and any other questions you may have. The customer serivice representative should be happy to assist you and have a very good understanding of your questions and concerns.
Finally, before choosing the best forex brokers, you must feel confidant in their security. Trusting your money with a broker is a very important decision, but there are regulatory bodies to help you make a wise choice. After all, you’d never hand over your money just because someone tells you they are legitimate, would you? These regulatory agencies operate all over the world, below is a list of agencies and their corresponding country:
United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
United Kingdom: Financial Services Authority (FSA)
Australia: Australian Securities and Investment Commission (ASIC)
Switzerland: Swiss Federal Banking Commission (SFBC)
Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
France: Autorité des Marchés Financiers (AMF)
One of the most important factors that determine a forex trader’s success is the broker you choose to do business with. When finding the best forex broker for you, it is important to do all of you research. A good forex broker will offer a secure service that is easy to use and navigate. They will offer a demo to try their services to make your decision as easy as possible. They will be registered with a regulatory agency and offer 24 hour customer service that is knowledgable. A good forex broker will execute immediatley in order to make the best effort for you to have a good trade. You should also look for bonuses in a forex trader’s promotional package.
One last thing to check is online reviews for the best forex brokers. There are several internet sites that offer trader reviews of brokers. Do not limit yourself to one review site as the information you gather, the better chances you will have of finding the best brokers for your needs. Find a broker that has several positive reviews from different users.