Eight Important Aspects in Choosing Your Forex Broker

dekac · 30-01-09, 08:47 PM

Hi Traders

Hope you're fine and ready to improve your knowledge...

When choosing a forex broker there are many factors to take into account.
?Trust
?Experience
?References from past clients
?Level of success
?Amount of advice to be given
?Convenience
?Amount of margin offered
?Speed

All of the above are of course important. In any financial transaction it is important to trust the broker you work with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience.

References from past clients are important. If your broker has helped someone else is successful in the past and that person is willing to speak up for him that says a lot. You can gage the level of success your broker has had by speaking with past clients and seeing how well they did working with this broker. Next, take a look at the amount of advice your broker is willing to give you. Of course, you make your own decisions and will never take another person?s word for everything, but it is good to have knowledge to work with, and advice from an experienced broker is key information to factor in. Convenience is also impotent. If you live in California then an Ohio broker might not be the best choice. But in the age of the internet that factor has become less relevant. With fax and email where you and your broker live has become less important.

The amount of margin offered is important. Margin is used to leverage your money. A broker who gives you a 50 to one margin is more valuable than one who gives you 20 to one. And of course speed. Is your broker quick? Does he return phone calls and emails promptly? If so, perhaps you can work with him.

Your broker will b a trusted advisor and someone that you may be working with for years to come so choose the relationship carefully. Ask friends and acquaintances who are active in forex trading what broker they use and how they met. It is quite possible that you can get a referral from a friend or acquaintance you trust and acquire a good forex broker that way.

Another good way to find a forex broker is to go online. There are message forums, chat rooms, and email groups through portals like Yahoo, Google and MSN that contain a wealth of information. Getting onto one of these online communities and asking other people for advice is the way that many people found their broker. If a broker has several clients in an online community who are happy with what he has accomplished for them, then that is a good indication that you might be happy with him as well. Take advantage of the number of people who are on the internet and join some of these online communities. Ask question and you?ll probably learn a great deal from the experiences that other people have had. Also find trade journals, magazines and ezines to subscribe to. Read as much as you can about the subject of forex trading before going into it. Become a smart shopper and smarter trader.

Finding a good forex broker is a job in itself. When you visit with a forex broker you are in essence conducting an employment interview to determine if this is the broker you wish to handle your financial affairs, so be thorough. Ask plenty of questions. Ask for references. Don?t be shy. Also check with other people in the office of the broker and see if you would trust them to fill in for your broker if he were not available. And, see if the broker is willing to offer you a demo account to use to get in some practice before you actually make an investment. If the broker is able to do so and encourages you then it means that the broker wants educated clients and is not just out for the quick buck. See what kind of training and tutoring the broker is willing to offer. A good broker will offer to answer your questions and help you through the learning process. ...

Regards
dekac

finvik · 05-02-09, 05:36 PM

I agree with you i also think the same one more thing i want to add is a good forex broker should be available for contact anytime of the day. He should provide you with the means to contact him instantly, either by e-mail, telephone, mobile phone or instant messaging. Forex trading is an extremely time-sensitive business and market fluctuations happen every minute so you should be able to reach your broker the moment you need him.A good forex broker is essential to your success in forex trading.

Reealjrd · 04-04-09, 10:06 AM

I selected some points which you must keep in mind while selecting a good broker
Comparing FX trading brokers
Average offered
Minimum deposit required
Amount/type of commissions charged
Spreads for major currencies
Availability of mini Forex accounts
Availability and quality of demo currency trading account
Number of currency pairs offered
Try demo accounts
See the demerits of the broker as well...

Well all you need to select a broker which suits your trading style
For an example I always look for scalping and not all the brokers
Allow to use scalping strategies so I chose a broker which allows me to scalp...

realFXpips · 04-04-09, 01:34 PM

All you three missed an important information about
prospective brokers. Are they registered with the
relevant financial authorities? If so do they have
their registration #s on their website? Can the #s
be verified?

I believe this is the utmost and final check on
your prospective brokers.

Cheers!

realFXpips · 15-04-09, 09:55 PM

Sorry, I had to delete the double post.

finvik · 16-04-09, 06:49 AM

the posint you have mentioned when i read them again i realized that the the success of broker is one of the most important aspects, coz The size of your broker is very important. A big profitable broker with a lot of customers is far less likely to go bankrupt than a new broker just starting out.

realFXpips · 17-04-09, 04:27 PM

And how do you tell a "big broker" from a "new broker"?
From the numbers they put in their homepages? That's
a lazy way of doing your due diligence.

Cheers!

zurik55 · 22-04-09, 04:17 AM

Reputation , Reputation ! is the factor in choosing forex broker

finvik · 24-04-09, 09:35 PM

One more thing i want to add that If you want to choose a good broker then there are so many things you have to keep in your mind.
When choosing a forex broker there are many factors to take into account.
- Trust
- Experience
- References from past clients
- Level of success
- Amount of advice to be given
- Convenience
- Amount of margin offered
- Speed
All of the above are of course important. In any financial transaction it is important to trust the broker you work with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience.

AdamN · 03-05-09, 07:31 AM

Quote:

Originally Posted by finvik

the posint you have mentioned when i read them again i realized that the the success of broker is one of the most important aspects, coz The size of your broker is very important. A big profitable broker with a lot of customers is far less likely to go bankrupt than a new broker just starting out.

Well if a broker did get bankrupt, thats mean they didn't trade on real market and the money only circulating locally in that broker just like casino, if there is a trader who makes too much profit and they didn't take any action to stop him, they will eventually bankrupt(usually they will freeze/suspend the account to stop him)

A good broker is the one that trade the deals on the real market and make profits from spreads/commision, and they won't get bankrupt regardless their traders making too much profit or too much loss

30-01-09, 08:47 PM	#1
dekac Junior Member Join Date: 19th June 2007 Posts: 23	Eight Important Aspects in Choosing Your Forex Broker Hi Traders Hope you're fine and ready to improve your knowledge... When choosing a forex broker there are many factors to take into account. ?Trust ?Experience ?References from past clients ?Level of success ?Amount of advice to be given ?Convenience ?Amount of margin offered ?Speed All of the above are of course important. In any financial transaction it is important to trust the broker you work with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience. References from past clients are important. If your broker has helped someone else is successful in the past and that person is willing to speak up for him that says a lot. You can gage the level of success your broker has had by speaking with past clients and seeing how well they did working with this broker. Next, take a look at the amount of advice your broker is willing to give you. Of course, you make your own decisions and will never take another person?s word for everything, but it is good to have knowledge to work with, and advice from an experienced broker is key information to factor in. Convenience is also impotent. If you live in California then an Ohio broker might not be the best choice. But in the age of the internet that factor has become less relevant. With fax and email where you and your broker live has become less important. The amount of margin offered is important. Margin is used to leverage your money. A broker who gives you a 50 to one margin is more valuable than one who gives you 20 to one. And of course speed. Is your broker quick? Does he return phone calls and emails promptly? If so, perhaps you can work with him. Your broker will b a trusted advisor and someone that you may be working with for years to come so choose the relationship carefully. Ask friends and acquaintances who are active in forex trading what broker they use and how they met. It is quite possible that you can get a referral from a friend or acquaintance you trust and acquire a good forex broker that way. Another good way to find a forex broker is to go online. There are message forums, chat rooms, and email groups through portals like Yahoo, Google and MSN that contain a wealth of information. Getting onto one of these online communities and asking other people for advice is the way that many people found their broker. If a broker has several clients in an online community who are happy with what he has accomplished for them, then that is a good indication that you might be happy with him as well. Take advantage of the number of people who are on the internet and join some of these online communities. Ask question and you?ll probably learn a great deal from the experiences that other people have had. Also find trade journals, magazines and ezines to subscribe to. Read as much as you can about the subject of forex trading before going into it. Become a smart shopper and smarter trader. Finding a good forex broker is a job in itself. When you visit with a forex broker you are in essence conducting an employment interview to determine if this is the broker you wish to handle your financial affairs, so be thorough. Ask plenty of questions. Ask for references. Don?t be shy. Also check with other people in the office of the broker and see if you would trust them to fill in for your broker if he were not available. And, see if the broker is willing to offer you a demo account to use to get in some practice before you actually make an investment. If the broker is able to do so and encourages you then it means that the broker wants educated clients and is not just out for the quick buck. See what kind of training and tutoring the broker is willing to offer. A good broker will offer to answer your questions and help you through the learning process. ... Regards dekac

15-04-09, 09:55 PM	#5
realFXpips Junior Member Join Date: 27th June 2008 Posts: 21	Sorry, I had to delete the double post. Last edited by Customer Services; 16-03-10 at 03:45 PM.

22-04-09, 04:17 AM	#8
zurik55 Junior Member Join Date: 22nd April 2009 Posts: 1	Reputation , Reputation ! is the factor in choosing forex broker Last edited by Customer Services; 16-03-10 at 03:45 PM.

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05-02-09, 05:36 PM	#2
finvik Member Join Date: 15th January 2009 Location: vertu Posts: 34	I agree with you i also think the same one more thing i want to add is a good forex broker should be available for contact anytime of the day. He should provide you with the means to contact him instantly, either by e-mail, telephone, mobile phone or instant messaging. Forex trading is an extremely time-sensitive business and market fluctuations happen every minute so you should be able to reach your broker the moment you need him.A good forex broker is essential to your success in forex trading.

04-04-09, 10:06 AM	#3
Reealjrd Junior Member Join Date: 31st March 2009 Posts: 1	I selected some points which you must keep in mind while selecting a good broker Comparing FX trading brokers Average offered Minimum deposit required Amount/type of commissions charged Spreads for major currencies Availability of mini Forex accounts Availability and quality of demo currency trading account Number of currency pairs offered Try demo accounts See the demerits of the broker as well... Well all you need to select a broker which suits your trading style For an example I always look for scalping and not all the brokers Allow to use scalping strategies so I chose a broker which allows me to scalp...

04-04-09, 01:34 PM	#4
realFXpips Junior Member Join Date: 27th June 2008 Posts: 21	All you three missed an important information about prospective brokers. Are they registered with the relevant financial authorities? If so do they have their registration #s on their website? Can the #s be verified? I believe this is the utmost and final check on your prospective brokers. Cheers!

16-04-09, 06:49 AM	#6
finvik Member Join Date: 15th January 2009 Location: vertu Posts: 34	the posint you have mentioned when i read them again i realized that the the success of broker is one of the most important aspects, coz The size of your broker is very important. A big profitable broker with a lot of customers is far less likely to go bankrupt than a new broker just starting out.

17-04-09, 04:27 PM	#7
realFXpips Junior Member Join Date: 27th June 2008 Posts: 21	And how do you tell a "big broker" from a "new broker"? From the numbers they put in their homepages? That's a lazy way of doing your due diligence. Cheers!

24-04-09, 09:35 PM	#9
finvik Member Join Date: 15th January 2009 Location: vertu Posts: 34	One more thing i want to add that If you want to choose a good broker then there are so many things you have to keep in your mind. When choosing a forex broker there are many factors to take into account. - Trust - Experience - References from past clients - Level of success - Amount of advice to be given - Convenience - Amount of margin offered - Speed All of the above are of course important. In any financial transaction it is important to trust the broker you work with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience.