Are you interested in plunging into the forex market but is wary about which online forex broker to choose? This can be a very confusing task owing to the huge numbers of online forex brokers available today. Not all of them are efficient or legit.
Here are 3 aspects of a forex broker that you should check while choosing one:
Currency Pairs Offered
It is wrong to assume that all forex brokers will offer you the opportunity to deal with all possible currency pairs. Before setting out to choose a forex broker, think and decide about the currency pairs that you want to trade in. Once decided, look for forex brokers which offer trading with those currency pairs. The last thing that you would want to do is finding out that the broker doesn’t offer that pair after paying a fortune as subscription fees. Even if it is one of the major currencies (like USD, GBP, Euro, Yen, et al.) there is no guarantee that they are offering it.
Bewildering as it may sound, not all forex brokers are properly registered with a regulatory body. In case you are subscribed to a forex broker that is not registered with a regulatory body, there is a high chance that you might be cheated off your money by them and you won’t be able to take a legal action against them. It is generally advised to look for forex brokers that are regulated by countries with rather lax financial laws. For example, if you choose a forex broker regulated by the Cyprus authority, you can enjoy the lax financial laws of the Cyprus government while claiming to be a part of the EU economy. Cyprus is actually one of the most favourite regulation options among forex brokers.
It is recommended that you take a demo with the forex broker before subscribing to it fully. This will enable you to find out what sort of analysts the forex broker employs. In case you see that the analyst is giving too many short sale and short term forex trades to you, it is indicative that the analyst is a novice one who is more keen on robbing you off your money by making you invest more and frequently. An experienced efficient analyst will suggest you for long term trading in the forex market (unless there are exceptional events which might force you to take a short stance in the market).
Remember that most highly qualified and efficient analysts are usually employed by the big financial houses. The small scale and mid-scale forex brokers usually employ analysts who are half decent and are keener on robbing you off your money.
Forex trading involves a lot of highs and lows and the last thing you want is to get stuck with a dishonest forex broker who wants to rob you off your money. Choose carefully and be patient.