A trader who wishes to be involved in the field of trading forex must consider picking the most reliable broker. When we say reliable, it should be someone who meets most if not all of the qualities that are stated below.
1.Seasoned
Seasoned brokers are obviously the ones who have been working in this field for a long period of time. When we say seasoned, it should also mean that they have handled several long term clients. Remember that dealing with a brokerage firm that has been existing for a long time and has dealt with several number of regular clients proves that the firm has a good reputation of taking care of clients. Thus,it is pretty obvious that the more clients and longer period of time in the service they have, the better brokers they are.
- Registered
Registration or accreditation to a regulating body is very important when one wishes to deal with brokers when venturing into trading forex. Asking about their regulating authority accreditation and the country where they are registered will help you figure out the legitimacy of the firm. Additionally, we strongly suggest having prior knowledge on the list of broker regulating authorities of each country prior to the interview.
- Speed of Execution
It is never wrong to ask about the broker's needed amount of time to execute an order. A good broker should not consider someone who wants a speedy execution of orders as a sign of a demanding client. A good broker should be aware that their clients must feel that the latter is the priority of brokers. Thus, they should be able to execute an order as fast as they can.
- Affiliation to reputable banks
Since you will be entrusting your hard earned money to your broker, it is very important to make sure that your target broker should have an affiliation with reputable banks as this will give you further security.
- Type of Brokerage Firm
Brokers come in two forms: Market Makers (MM) and Electronic Communications Networks (ECN).These two types differ from each other. Market Makers "make" or set both the bid and the ask prices on their systems and display them publicly on their quote screens while ECN brokers operate on a settlement instead of pricing basis. Know more about these types of brokers and pick the perfect type that matches your preferences.
- Required Trading Size
Know about the brokers required trading size that is needed to maintain your account. Be aware that your position should not be suddenly closed due to fund shortage. Relative to the required trading size, it would also be great to ask about the firm's margin requirement. Opt for a broker that offers a lesser margin requirement as this will give you more control on your account.
Conclusion:
Brokers in the end exist to serve as an aid towards an easy and less hassle trading experience. With the numerous broker firms that are available, it is a trader's privilege to conduct a background investigation prior to availing of their service.
MT4 platform is the most popular trading Platform.
Why you waiting so Download MT4 for PC and start you’re trading & make money!
MT4 Platform for trading forex, Reliable, security, and analysis financial market, and using for expert counselor.
Nowadays, you can easily find promotional and educational material on different platforms for trading in the foreign exchange market.
Different Companies introducing the use and quality of trading platforms (like MetaTrader4 and latest, award-winning MetaTrader5) for the ease of forex traders.
Consider an example of GBP and USD, USD may be traded against the GBP, vice versa and so on.
They need to invest their time in speculating the movements of currency exchange rates (Like stock trading speculating stock prices).
These days, with the invention of sophisticated technologies and the popularity of online trading, individual traders can also participate and invest their money in the foreign exchange market.
Forex market differs from the other traditional markets (like Stock Markets) in terms of its operations.
