How to Choose Your Forex Broker

Fri, Oct 26, 2012

Investment

There are a lot of people that trade forex nowadays, not just dedicated professionals. If you’re looking to get started by opening an account, you’ll want to know how you go about choosing a broker. The broker is the company that you’ll conduct all of your forex activity through, so it’s vital that you choose a good one. There’s nothing to stop you using several, but it is rarely of any benefit. There are lots of them out there, and there can be big differences between them. These are some of the important things to think about.

Service – As with anything you’ll be putting money into you’ll want to receive great service. You never know what might happen, and when you might need help or have a query, so it’s good to know that you’re with a broker that is known for giving its clients good service; one that values customers. If you look at reviews on the internet, you’ll quickly be able to find out which brokers have an excellent reputation, and which ones don’t.

Platform – There are quite a few different platforms that your broker might supply you with. This is the piece of software that you’ll be using to conduct all of your trades from, and is how you track all market data and information. You need to be comfortable using the platform because you’ll have to use it all the time. Some brokers actually have their own platform apps which run on smartphones. If you’re the sort of person who wants to get things done on the go, then a broker like this could be for you.

Tools – There are many more things other than the platform (or included as part of it) which a broker might give you to in order to aid you in your trading. The best brokers will offer a big range of tools such as economic calendars, pattern recognition technology and indicators that will certainly help you to increase your profits.

Fees – The fees for most things will be very similar across all brokers, but what do vary are the spreads. This isn’t applicable if you don’t plan to spread bet, but if you do, then you can considerably increase your profits by choosing a broker that has really good spreads.

Reliability – This can be a really important factor that not everyone considers. One of the main attractions of forex trading over other forms of investment is that the market is accessible for 24 hours. If your broker goes down for any reason, and you can’t make or close trades, then your profits are being harmed. Again, checking reviews will give you a good indication of how reliable a broker is.

Spend your time researching brokers before you choose one, and you’re much more likely to get good service. It is actually true that choosing a better broker will impact on your profits. CMC Markets offer all of the above, so they could be a good place to start.

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