WHO WILL BE YOUR FOREX BROKER?


Are you an expatriate, looking for where to invest your money? Do you know that foreign exchange trade has the biggest financial market in the world and that you can access it irrespective of where you are? But first, one has to ask who your forest broker is? In the world market today, there are a lot of them that come with several online platforms for you to trade. There are some tips for choosing the best forex broker .

In this article, we will look at some important things for you to put into consideration before you know who your best forex broker is. There are some procedures you have to follow before you know who your broker will be. Your forest broker has to be that one that will help you to undertake your trading business. Knowing who will be your perfect broker might appear to be a difficult thing to do that might require that you have to search on the net and check advertisements.It is however important, that you undertake them, given that the market as it is today is competitive and fierce.

The Governing Body

Knowing under which regulation a forex broker operates is undoubtedly one of the key things you need to check. Do you think all brokers are trustworthy? Though their website might look professional, it is still possible that they are under no regulation. They operate all around the globe and there is not one governing body that regulates all of them.

However, there are certain countries that have their own regulations, but yet again it doesn't guarantee that all the brokers are regulated. Have you thought of considering the activities of the brokers to find out if they are well governed?

The essence of knowing the regulated ones is so that you are sure of a certain level of security, particularly for your withdrawal and deposit. The good news, however, is that there are governing bodies around the globe that already identify the credible brokers. This will make your decisions easier for you. In the UK, there is the FCA (Financial Conduct Authority), in the US, CFTC (Commodity Futures Trading Commission) and Cyprus, Securities & Exchange Commission (CYSEC)

The Kind of Broker and Dealer

When trading in forex you can use dealers and brokers.

The broker serves as an intermediary between you and the dealers.

By electronic means, they process your orders.

They will offer you fixed or variable spreads which from time to time they get a percentage commission on the spread.

The dealers make the markets and direct quotations of offers that can bring about a low spread.

They have a dealing desk for the processing of orders.

Understanding the different kind of brokers and dealers that exists in the market will be quite helpful in knowing who your broker will be.

Your broker needs to be the one that suits your individual requirements.

The Cost of Transacting So as long as you trade you will incur costs from transacting no matter which currency you trade on.

For every time you begin a trade, you will be paying for a spread or commission while you might be trying to find the ones that are cheap and affordable.

Sometimes it is better to overlook the cheaper ones and go for a broker that is more trustworthy.

It's up to you to figure out the kind of spreads you want and consider the obtainable options.

Normally fees are not charged by traditional brokers as they benefit from the spread which is the difference in the asking and bidding price.

There should be a proper balance between security and your transacting cost.



The Platform for Trade

You might want to know if the platform is easy to use. How about its stability as a market portal? Basically, the trading activity will occur through the platform. You might need to be sure that the platform is eye-catching, filled with analytical tools with every trade easy to begin and end.

If the platforms are properly designed, their 'buy and sell' controls will have no flaw and there will be a 'panic control' that can end all open trades. Poor platforms can result in mistakes that will be costly for you.

You might also need to consider if there are news feeds and if they come for free, and also other information that can be helpful. Consider if there are updates every day, strategy designs, automated trading process, customizations, trade alerts and different order entries. Platforms with a free demo account also help you to test your trading skills before doing the real trading.