|When looking for a Forex broker, you want to make sure you have the right one. It can be a dangerous and very unhappy place to be if you find out your broker is not everything you hoped he would be. When looking for a good broker, consider these 3 important topics:|
Bigger is Better
It is true. The larger banks and brokers have higher trade volumes and more solid financial assets, so they have more access to better prices. They are able to offer smaller spreads and more options than the smaller brokers. Because it a relatively unregulated market the bigger banks and brokers are able to gain access to the better and higher quality executions. Rollover and Carry Trade.
Rollover is based on interest rates between the currencies. If you end up having to pay interest, it is called a “negative roll,” and this is routine. If you end up getting paid on interest, it is called a “positive roll,” and not offered by all brokers. Also, if you are interested in Carry Trade, you will want to know how your broker leverages your money. Be careful, because leverage can increase your losses by a large amount, but it can also magnify your gains, so think and research a lot before leveraging too much.
In a market that does not have a centralized exchange, and is not a very regulated market, it helps to have a broker that is willing to answer your questions and is available when you need them. The Forex market is open for 24 hours, 5 ½ days a week. You want to make sure your broker is also available during those hours. If you can trade, you should be able to reach your broker, and they should be kind, helpful, and informative.
If you plan to trade Forex online, you will also want to look into other aspect of the online broker. Look into using a Forex EA, or building your own. You want to know how to read your Forex Signal, and the online broker needs to have a platform that you like, and is easy to use. Forex Trade Copier is a great source that will help you through your trading experience. Either online, over the phone, or in person, it is important to have a Forex broker you can turn to for advice and help.