Four Tips For Selecting Good Forex Brokers

The foreign exchange market is the world’s biggest financial market. This is due to the large volume of currency traded on a daily basis. Due the fact that there is no central place where the traders interact with the markets, forex brokers act as a conduit between the traders and the markets. Presently, there are so many brokers and many still continue to join the market. Because there are also conmen out their waiting to prey on unsuspecting traders, you need to be careful while selecting a broker. Here are some of the important things you need to look out for.  

Compliance with regulations

Various countries have different regulations which govern foreign exchange within their territories. As such, there are a set of regulations that each brokerage firm will be required to meet before being licensed to take part as a broker in foreign exchange. It is important that you work only with firms that are compliant with such regulations as they are guaranteed to operate above board and you can’t easily lose your investments while with them.

Currency pairs

Brokers have various currency pairs from which the investor can choose the ones to trade. You need to indentify the currency pairs that you are interested in and make sure that the broker has a combination of such pairs. You can decide to trader on either the major or the minor currencies.

The features of their accounts

Each broker will have different account options available for their investors. Below are some of the important features to look for in the accounts:-

·         Leverage and margins – these magnifies the trader’s account and enables them to trade with more funds than they actually have in the account.

·         Ease of deposits and withdrawals – it should be easy for you to access your money.

·         Commissions and spread

·         Initial deposits – many accounts will allow small deposits of as low as $50.

Customer care

Forex trading occurs on a 24 hour basis and good forex brokers should be accessible at any time you may need them. They should have a number of ways which you can use to contact them such as live chats, dedicate telephone lines, short message services etc. You don’t want a situation where you have to wait for days in order to get in touch with the customer care staff.