Forex Brokers - Recommendations and Advice

Forex Brokers - Recommendations and Advice

The choosing of a Forex Broker requires some careful consideration.

At the least some basic questions are posed.

1.      Is the Forex broker regulated?

In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and a NFA member. The CFTC and NFA were made to protect the public against fraud, manipulation, and abusive trade practices.

2.      Customer Service

Forex is a 24-hour market, so 24-hour support is a must! Can you contact the firm by phone, email, chat, etc.? Do the reps seem knowledgeable? The quality of support can vary drastically from broker to broker, so be sure to check them out before opening an account.

3.      Word of Mouth. 

Trading Colleagues and the various Forex Forums can direct you to the best Brokers. 

4.      Spread.

The difference between the Sell and the Buy quotes, also know as the Bid and Offer. Not that a breakeven n trade will at least require a move equal in distance to the Spread. Does the spread move or does it remain constant. Some companies may engineer the Spread difference at certain times to their own advantage.

5.      Commissions.

Forex is unique as compared to trading futures in that the commission should be built into the spread and should not be a separate charge.

6.      Trading Account.

It is necessary to know what the minimum balance for the account is. What is the minimum lot sizes that can be traded.  A newcomer to trading should start with mini lots, i.e. 0.01 lots  as a start.

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