Regulated broker forex.
If you are interested in trading forex, it is important to find a regulated broker. This will ensure that you get professional advice and access to the latest forex market information. When you trade with the help of a broker, you can save both time and money.
There are many companies that provide trading services for free. They advertise as managed account, automatic trading, demo trades, managed accounts etc. It can be quite confusing. What does all this mean? How do we compare the features?
You need to find a broker who is registered under the regulatory bodies. You can look in your local regulatory commissions or the National Futures Association. The National Futures Association has a list of regulated brokers. Once you have a list of forex brokers, the next step is to check them out with respect to their registration status.
Once you have the list in your hand, the next step is to check out the credentials of the brokers. Take a close look at their credentials. Who are they registered under? What is their reputation in the market? Is there any evidence of disciplinary action against them? Is the company regulated by the Commodity Futures Trading Commission (CFTC)?
Next, check out the fees. These are not mandatory, but you might find a broker who is willing to take them. These fees can be a major source of revenue for the broker. Do not choose a broker that will ask for a large retainer up front. If the broker wants to charge a large fee, you know that you are getting a good deal.
The third thing you need to check is the customer service of the broker. Do not choose a broker that does not provide support. You should be able to contact your broker if you have any question or concern. There should also be a toll free number where you can talk to a broker. Many brokers offer support through email and telephone.
Look for the brokers that are members of the National Futures Association (NFTA). This is a group dedicated to promoting and protecting the interest of the forex brokerage industry in general. Brokers belonging to this group have met minimum standards required by law and adhere to ethics. You may also want to check if a broker has been a member of the NFTA for three years. Broker companies that are members are held to higher standards than those who are not.
When you have narrowed down your list, call up each of the prospective brokers. Ask plenty of questions about their firm and their practices. Remember, your investment is very important. You will not regret choosing the best broker for you.
If the broker from whom you have chosen has been in the business for more than five years, then think twice before making the final decision. It may not be a bad idea to check out other brokers as well. Try and find out how long each one of them has been trading forex. A firm that has been in the industry for a long time may be able to provide you with useful advice regarding your investments. You will still need to do your own research in order to determine if the advice offered by the broker is sound.
In many instances, a broker's record may not reflect his real personality. You need to know what type of person he is. You will definitely be able to judge a good broker by the manner in which he answers your queries. You will not want to deal with a broker who avoids questions, just as you would not want to deal with a broker who makes unfounded remarks.
Do not forget to compare regulated brokers before you make the final choice. There are some brokers who deal with only a single type of currencies. In this case, you will definitely need a broker who is knowledgeable about the currencies that you trade in. Brokers will also be able to give you advice on which currencies to invest in. This will make your forex transactions much easier.
Another advantage that comes with dealing with a regulated broker is that you will be able to save on brokerage fees. The brokers' costs will be limited because they will be covered by the central government. Brokerage firms can be found all over the globe. Therefore, there will never be a shortage of brokers. This will help the brokers earn a very attractive margin.