Currency trading brokers can be found literally everywhere online, and just like every other product you are interested in, brokers also levitate the quality spectrum from excellent to not recommended.
But the question still remains, especially for forex beginners who are looking to break into the market: How do you find a trustworthy broker and what qualities should they bring to your overall trading?
First step in finding good currency trading brokers to walk with in your forex adventure is to make sure that they are related to a reputable institution. Do your research on the firm they are working with, and make sure it’s registered with the Futures Commission Merchant (FCM), as well as regulated by the Commodity Futures Trading Commission (CFTC).
Once you have selected a good broker to work with, consider the trading tools they have to offer. For instance, trading platforms are an integral part of daytrading, and you want to get your hands on an online system that delivers high speed, technical analysis tools, real-time features and excellent customer service. Less than that is a definite forex dead end.
Leverage is a necessity for all currency trading brokers, and finding a good brokerage firm that has acceptable levels of leverage for your specific needs is a must. A good forex broker will offer you a variety of options that let you vary the amount of risk you choose to take.
Be sure to test every tool you are being offered, and ask for all the required information regarding market analysis and client assistance. Never take anything for granted.
Another important factor to consider while choosing currency trading brokers is the amount of accounts they offer, especially for beginners that may not have what it takes to wander off the market by themselves at the beginning.
Look for a broker that offers not only a demo account, but more than one account. The smallest account is known as a mini account and it requires you to trade with a minimum of around $300. The mini account also offers a high amount of leverage.
A standard account requires a minimum initial capital of $2,000, and higher levels of leverage. There are also premium accounts, which offer not only high levels of leverage but additional tools of service. Let your broker explain which account is best for you with your initial investment as the main parameter.
There are other factors to look for in a broker, but you will figure them out as you go along. If you are not completely satisfied with all the guidelines explained by your forex currency broker, there are ways to run a background check on them. The National Futures Association offers online tools to search for information on your broker.
You can also visit forex forums and websites and chat with actual experienced brokers and look for useful advice.