The choice of your broker is one of the most important decisions you will make when trading on the Forex market. It can mean the difference between trading Forex successfully and failing. When choosing a broker, there are many factors that need to be taken into consideration. More bonuses?
Regulations – Security of Funds
What is the extent of insurance for client money? Online brokers often operate in tight regulatory environments set by the regulatory authorities in countries where they are licensed. The forex regulation in some countries is stricter than other countries, especially offshore countries. Some countries, such as Australia Canada Switzerland United Kingdom and United States, have a dedicated forex broker monitoring program. Verify the regulatory body that regulates the broker. You should contact the broker if you can’t find any information about them on their website before you sign up for trading. You should find a different online broker if the broker has not been licensed or regulated by an authority that is reputable.
2. Execution of Trade
Discover the business model of a potential forex broker. Are they more like a market maker or electronic communication network? Do they offer automated execution of trades? How fast are orders executed on average if not? Offset client trades or not? What is the maximum amount you can trade before requesting a quotation? All of these are good questions for a potential broker.
2) Trading Platform
Does the platform allow you to download it or is it web-based? Can it cope with high volumes during fast-moving markets? You may not know how a platform performs during fast-moving days, even if it runs well in normal times. It offers important order types like Limit, Stop and OCO orders. What other services is the platform offering? It should at least offer currency charts, breaking news and a demo to test the platform.
4) Account Size
Some brokers require a minimum trade amount and some will not let you adjust your standard trade lot. Some brokers offer mini- and standard-sized accounts and require that you have a certain minimum balance in your account to begin trading.