As a beginner in forex trading, what criteria should I use to select a broker?
Author: I have heard from friends that some forex dealers have shady practices, i.e. they take the opposite side of your trade so you can’t win easily, don’t fill your order easily etc…..
Use This Checklist When Evaluating a Forex Broker
Always score your broker candidates as a plus or minus before opening an account. The brokerage company should have positives for each criteria.
* Should be regulated by home country
* Pip spread of 2 to 3 pips
* Performance of fast order execution
* Should be easy to contact: readily available by phone and email
* Should have free demo accounts available
* Should have a comprehensive and customizable platform desktop available for charting
* Performance as a broker should be recognized by awards
* Should have presence in all major global financial centers
* Should offer leverage of at least 100:1
* Should have mobile trading software available so that trades can be observed away from desk
There are too many forex brokers out there, of cause we have heard a lot that those smaller forex brokers with their shady practices as you mentioned.
Just go for those big and reputable forex broker. If possible, look for a broker that has an office in your location so that you can visit them directly.
Good luck.
The first and foremost is to go with a reputable forex broker. This will ensure piece of mind and enable you to succeed. Your forex broker should be your partner and not be working against you.
Once you have a list of brokers that are reputable you need to compare the commissions and spreads. If the broker charges no commission that the spread will be your cost. The leverage should be chosen in line with your trading style. If you are a short term scalper you may need more leverage then a medium term trader.
I have been trading the forex market for years and found the most reputable brokers. You can see the reviews at http://www.forexlane.com/brokers.html
The best way is to learn about all of the specific criteria that brokers use to distinguish themselves. They all say they have the best returns, but you should look into which platform they use, their commission take, their promotions, etc.
Once you know what you’re looking for, go through online directories of brokers to find some that look like good possibilities. Here is one good site: http://www.forexpros.com/directory/brokers-by-name
Good luck!
you need to ensure that your broker is legitimate, trusted, reliable and must be among the top five in the forex trading business. having said so, you can check on this source. it will lead you to a site that has the criteria as stated above. other than that the site will have the following reasons for being considered the best forex broker- personal service & training; no software download; credit card deposits; margin trading with low minimum deposit; quick registration; managing rates, limits and stop-loss; innovative tools to trade smarter; no hidden costs; trade anywhere at any time with special features and tools only available to our traders; special terms for frequent traders;data security and privacy; reputable business partners; real-time quotes, etc.. all the best.