Top Ten Tips To Find a Forex broker - These are the crucial questions you need to ask yourself when choosing a broker.
1. Customer Service
How easy is it to contact the Forex broker’s customer service?
Does the Forex broker have online chat, email, and/or telephone customer service?
2. Account Size
What is the required minimum balance to open a trading account?
What is the minimum trade size required by the Forex broker?
If there is unused equity, does it earn interest whilst in your trading account?
Is it possible for you to trade a different standard lot size traded?
3. Transaction Execution
How quickly does the Forex broker execute orders?
Can the Forex broker provide you with automatic execution?
At what point can you request a quote?
If the Forex broker does not agree with your trading style will you be placed on manual order execution?
4. Forex Broker Regulation
Will your trading funds be insured and kept separately from the Forex broker’s operating funds?
Is the Forex broker regulated? Which authority regulates the Forex broker?
5. Trading Margin
What is required margin of the Forex broker?
Is the required margin different for standard and mini accounts or the same?
Does the margin ever change? For example, is the required margin different at weekends or dependent on the currency pair being traded?
6. The Spread
How tight is the spread?
Is the spread larger for mini accounts or the same as the spread for standard accounts?
Is the spread variable or fixed?
Does the spread change when news announcements are made? If so by how much?
7. Forex Broker Commissions
Does the Forex broker charge commissions or is the spread alone how the broker makes their profit?
8. Transaction Slippage
What is the usual slippage in a normal and a fast moving Forex market?
9. Trading Platform
How many different currency pairs are you able to trade with the Forex broker’s platform?
If you want to use an automated trading system doe the platform include an Application Programming Interface (also known as an API)?
Does the Forex broker’s trading platform operate reliably and consistently during news announcements or when a market is moving fast?
What additional features does the trading platform include? For example, trailing stops, mobile trading?
10. Trading Rollover Policy
In order to earn interest on an overnight position does the Forex broker have any additional conditions or requirements?
Is a specific minimum margin required by the Forex broker for you to earn interest on an overnight position?
Yes, it is a lot of information you need, but it is certainly worth the effort once you become a profitable Currency Trader.
