10 Tips to Help You Choose a Foreign Currency Broker

Top Ten Tips For Finding a Forex Broker, click for source: These are questions you must ask yourself before choosing a Forex brokerage.

1. Customer Service

Customer service is easy to reach at the Forex broker.

Can you contact the Forex broker via email, online chat or telephone?

2. Account Size

What is required to open an account for trading?

What is the minimum size of trade required by the Forex broker?

What happens to unused equity in your trading accounts?

You can trade in a lot different than the standard size.

3. Transaction Execution

How fast does the Forex Broker execute orders?

Is the Forex broker able to provide automatic execution for you?

What is the point at which you can request a price?

You will be put on manual execution by the Forex broker if they do not like your trading style.

4. Forex Broker Regulation

Your trading fund will be protected and held separately from your Forex broker’s operating money.

What authority regulates the Forex broker? Who regulates the Forex broker and by what authority?

5. Trading Margin

What is the margin required by a Forex Broker?

The margin requirement for both standard and Mini Accounts is the same.

Is the required margin subject to change? Does the required margin change at the weekends, or depending on which currency pair is being traded?

6. Spreading the Spread

How tight is your spread?

The spread is higher for Mini Accounts or equal to the standard spread for Standard accounts?

Spreads can be variable or fixed.

Do the news announcers change the spread? What is the change in spread?

7. Forex Broker Commissions

Is the Forex broker making their profits solely from the spread or by charging commissions?

8. The Transaction Slippage

What is the normal slippage on a Forex market that moves fast and one with a slower pace?

9. Trading Platform

Can you trade multiple currency pairs on the platform of a Forex broker?

Do you have an Application Programming Interface?

The Forex broker’s trading platform is reliable and stable during fast-moving markets or market announcements.

What other features is the platform equipped with? For example, trailing stops, mobile trading?

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