How to Find the Best Forex Broker - 6 Crucial Hints
It can be an absolute nightmare trying to choose and find the best forex broker for your circumstances. There are so many issues to contend with - whether they will trade in your region, what their fees are, can you even trust them etc. Having been through this process several times over, and having made a few mistakes along the way, I wanted to show you some crucial things to look for to ensure you find a good forex broker with ease.
Hint 1 - Experience And Trust Go Hand In Hand
There is no point even considering entering into a relationship with a forex broker if the trust element is not there. Call me old school, but trust needs to be earned through experience. Sure there are new brokers becoming available regularly - and some of them are good at what they do. There are also plenty of scam artists that are looking to prey on the inexperienced. Generally the best forex brokers through their positive experiences with clients become attached to a broking firm. This is definitely the first place to start your search.
Hint 2 - Location Does And Does Not Matter
With forex going online it has made the choice of forex broker that much wider. It really does not matter where your forex broker is located - as long as they are willing to trade in the region you live in. Certain brokers will only accept certain currencies which will place an immediate limitation on whether you can use their services. Make sure you understand this before you waste your time and effort on researching a broker.
Hint 3 - Get References From Previous Clients
When it comes to choosing the best forex broker references from previous clients are crucial. Any broker worth their salt will have a string of references from satisfied clients which will clearly prove their track record. Be very wary if a broker does not want to show you references - a clear indication of a scam.
Hint 4 - Understand The Margin & Your Leverage
The margin a forex broker can offer is crucial. The higher the margin the more leverage you will be able to achieve with your trades. So there is a big difference between a margin of 20 and 50. In general brokers with higher margins have more experience and reputation as they will have larger amounts of capital and funding behind them in order to achieve the higher margin.
Hint 5 - Make Sure They Are Quick Communicators
It goes without saying that you need to make almost split second decisions in forex trading. What good is a forex broker who is slack at returning phone calls and emails. You need someone who is going to be straight on the phone or email when a crucial decision needs to be made. Sus out the broker with your initial contact once you have proven that you are an interested client seeking his/her services. If you sense any slackness then continue your search.
Hint 6 - Find Them Online
If you are serious about finding a quality forex broker then all of the above points can be researched online. There is an ever increasing amount of forex forums which are fantastic places to start your search. I myself spent days on forex forums asking questions and looking for negative feedback on the brokerage firms I was interested in pursuing. It is a little effort - but it will pay off for you in the long run. Another good tip is to subscribe to Google News for 'forex broker' - that way any news regarding forex brokers will be emailed to you - so you ensure you stay up to date.
Conclusion
Finding the best forex broker can take some time. Hopefully the advice in this article has given you some hints on how to speed up the process. Remember that a forex broker is there to service you, and they should be willing to explain everything and provide fast and detailed communication. They should offer you a demo account to trial their services. Furthermore a good forex broker will take the time to explain everything and ensure you are comfortable with trading.
