How to Choose the Right Forex Broker For You
Every day I'm bombarded with questions such as:
How do I choose the right forex broker?
How do I know if the broker is reputable?
Who is the best forex broker?
I'm going to do my best to answer some of the questions that are most frequently asked of me as it pertains to the world of forex. Please note: some of these answers contain my own opinions. You should plan on doing your own due diligence before choosing a forex broker that suits your needs.
Q: Which forex brokers do you recommend?
Q: What are the most important qualities to look for in a forex broker?
Here is my quick list:
1. Reputation. (to check out a company's reputation, simply do a Google search for the company. I like to search "company name review" in order to get a handle on how decent a forex firm is. Google is your friend).
2. Customer Service. Does the broker answer their phones in a timely manner? Do they quickly respond to emails? Is there contact information posted on their site? It's obviously of extreme important that a forex broker be easily contactable - what would happen if you had trouble getting ahold of somebody in a time of need?
3. Stability. How long has a broker been in business for? I like to deal with long-established companies, as they are very likely not operating scam operations. I tend to avoid new companies in the forex industry, no matter how reputable they purport to be.
Q: Is it possible to receive a bonus when I sign up for a forex account?
Definitely. Most forex brokers will have the bonus information posted on their site.
Q: How long does it take to sign up for an account?
This depends on you. You can have your account opened and funded within 15 minutes if you want, as most forex brokers accept credit cards, in addition to multiple other payment options.
Q: I heard that forex is a scam - is that true?
The foreign exchange market trades many trillions of dollars every day. It is the most liquid market in the world.
Sure, there are some unscrupulous operators out there that will try to scam you by operating shady brokerages or by offering worthless products, but the forex market itself is extremely liquid and reputable.
Q: Is trading forex hard?
Trading anything is "hard" - stocks, bonds, forex, etc. Anybody who says that trading forex is "easy" is probably trying to sell you something.
Can you make money trading forex? Absolutely.
Is it easy? Absolutely not.
Q: What other advice can you offer me about trading the forex markets?
The biggest piece of advice that I can offer - paper trade before starting out with real money! I understand that you will want to just jump right in and start trading with real money, but please - do some paper trading first. Get a feel for things, and then jump in and trade.
Filed under: General Knowledge