Selecting a Forex broker can be an extremely difficult decision.
For a start there are dozens of Forex Brokers, but beyond that,
each broker provides a different range of services and options.
So it's important to select a broker that can cater to your
trading needs. And then of course, there's the major issue of
trust and reliability.
So here's a list of issues to consider when searching for a
Forex broker. You should be able to use these factors to draw up
a shortlist of brokers that suit your circumstances.
Dealing Costs
- Do they charge dealing commission?
- How wide is their bid/offer spread?
- Is this fixed or variable?
- Does this apply to all currency pairs?
- Does this apply to both standard and mini accounts?
Margin Trading
- What rate of leverage do they provide?
- Is this the same for both standard and mini accounts?
- Is this the same for all durrency pairs?
Trading Account
- What is the minimum amount required to open an account?
- Will unused funds in your account earn interest?
- What is the minimum size of lot that can be traded?
Trading
- How many different currencies are available to trade?
- How reliable is their trading system, especially during
peak dealing periods when the news flow is heavy.
- Does the broker provide any other features such as
software, tools and data for the purposes of research and
analysis?
- What additional features are on offer (for example,
trading from the chart, mobile trading, one click dealing
etc)
- How fast can they execute your trading orders?
- Do they offer automatic execution?
- What volume can you trade before you have to request a
quote?
- Do they offset all clients' trades?
Rollover
- What are the conditions required to earn rollover
interest on overnight positions? For example, is there a
minimum margin requirement?
Safety Of Funds
- Is the broker regulated?
- Will funds in your trading account remain separate from
the broker's funds?
- Will your funds be protected against fraud or potential
insolvency of the broker?
Reputation
- What have other traders said about the quality of
service provided?
- What level of customer service is provided?
- What do the reviews say?
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