The choice is crucial, and yet many of us do not get it right first time. Having the right broker can basically make a difference to your profit or loss. So what must you look for in a forex broker?
1. Investment Level
Look for a brokerage service that’s targeted at clients at your investment level or a little higher. They vary significantly from a $25 minimum right up to $10,000 or more. Don’t go for the currency exchange broker with the lowest minimum investment unless you actually are going to invest the minimum. Each company’s spread and services will be different, and you want a service that could be a good match for you.
2. Regulation
Check their membership of regulatory bodies. This could give you some protection in the case of the organization’s failure. Keep in mind the regulators will depend upon the country in which the company is registered. The main US regulators are the Commodity Futures Trading Commission ( CFTC ) and the national Futures association ( NFA ). Foreign brokers won’t be registered with them but will have other options. Check precisely what those are and what protection they give you.
3. Platform
Take a look at the software platform. You can usually access this in a demo account. Unless you plan to subscribe to another technical research service, you’ll need something that offers good charts. Some forex brokers also offer financial reports alerts which can be helpful. Don’t forget to test the order process is clear and easy, to avoid mistakes.