The foreign exchange market or Forex is the fastest growing market in the world. The daily volume of Forex trading reaches an astronomical amount - one trillion US dollars. Bidders are: national and commercial banks, investment companies, as well as private investors who need an intermediary, a broker, to conduct transactions. We will discuss the issue of choosing a broker for Forex trading.
It is necessary
information about the broker
Instructions
Step 1
Find out the history of your chosen broker. How long has he been on the market, how many clients he has, how often there have been order failures, etc. You can find all this information on the Internet in many forums dedicated to this topic. It is worth paying attention to whether the broker has licenses, whether there have been cases of their recalls, and it is also recommended to talk with his past or current clients. If there is such an opportunity, it is advisable to contact one or more clients of the company and find out whether there have been cases with a delay or refusal to withdraw funds from the trading account.
Step 2
Visit the office of your chosen company, find out the terms of trade. The first thing you need to pay attention to is a set of tools (trading instruments), the size of the trading leverage, the size of the spread, margin requirements, and the presence of commissions. Currently, brokers provide their clients with a huge selection of trading instruments: various currency pairs, precious metals, raw materials, shares of international corporations. Trading leverage will allow you to make deals worth hundreds of thousands of dollars even with a small deposit. Typical leverage ranges from 1:10 to 1: 500. The higher the leverage, the larger the lot you can trade, but the risk in this case will also be higher. Spread is the difference between the buy and sell price, which is determined by the broker. In everyday life, we may encounter a spread at a simple exchange office, where the buy and sell prices are different. Another important question that you need to find out is the amount of commissions that brokers charge when making transactions with securities.
Step 3
Find out how funds are credited and withdrawn to a trading account. Many brokers offer to deposit and withdraw funds through banks or various electronic payment systems such as Webmoney. When choosing one or another method of withdrawing funds, pay attention to the amount of commission for the implementation of the service.
