If you’re interested in joining the fast-paced, exciting and potentially lucrative world of foreign exchange trading, or forex, then the first thing you need to do is to find a broker. And since this could be the most important decision you make in your forex career, you should approach this carefully and weigh a number of factors before finally choosing.
What is probably the most important factor that should influence your decision is whether or not the broker you choose is regulated. If you read articles on some of the many excellent self-help forex websites that are out there you will quickly realize that this is emphasized by just about everyone. And after the recent problems and scandals in the financial world these last few years it should be clear to everyone considering investing anywhere that regulation is important. A company that is regulated by a major regulatory body or a national banking authority is what you should look for. There are a number of them available and they will always be very upfront about proclaiming their regulatory status because they definitely want you to know about it.
And don’t be fooled by a company’s size either. Some of the biggest forex brokers in the world are unregulated and located in countries that are typically regarded as tax havens. They could be completely safe, they may not be, but security is probably more important than a few small advantages that these brokers may offer you, especially when it comes to your hard-earned money.
Another important consideration is whether or not the broker offers free demo programs. Your broker should be able to set you up with a free demo account so that you can practice trading for a period of time before you actually start risking your money. There are many things that you will need to learn before you start making trades so education is important. Because of that you’ll want a broker that also offers educational material on all aspects of trading. What is especially useful is a live blog where the company will continually post new information about the markets as well as general information about trading. Not all brokers do this so try to find one that does.
A feature that can also be very helpful is live chat. If you are having problems or just a have a question you don’t want to have send emails back and forth. In the fast-moving world of forex you don’t want to be inactive for long periods of time so you need a broker who can be responsive to your needs very quickly. There are a number of other factors that will vary from broker to broker including the spreads they offer, the tools that they make available, the expert testing results that the present and many more. As you start to learn more about forex trading you’ll understand why these are important and you’ll be able to make your decision based on this.
Weigh the above factors carefully, make your decision and then begin to enjoy the fast-paced and exciting world of online forex trading.
Disclosure: No Positions