How to choose the best broker?

Forex Trading | by ForexCycle.com | Wednesday, 29 July 2009 15:18 UTC

There are a number of important factors to be considered as you decide on the forex broker best suited to your expectations. Assuming that you’re a beginner, you do not possess a background in trading or similar risky activities, and every single concession that you can get from the broker is an advantage increasing your chances in trading, and improving your profitability. Since it is highly likely that the initial period of your career will involve setbacks and problems (after all, did you learn swimming in your first attempt?), you must make the necessary arrangements to minimize your risk, and one of the best ways of doing so is choosing the right broker. There are a couple of things which can help you with the selection process, and we’ll mention a couple of them here.

Minimum deposit and leverage ratios

These are some of the most important aspects of a forex account for a beginner. A beginning trader will probably suffer losses, and the smaller the minimum deposit requirement, the smaller the losses will be. Due to the vast size and depth of the forex market, there is absolutely no reason to begin your trading with any amount. You can begin with $10, you can begin with $1000, the market will be able to absorb both sizes in the blink of an eye. And in addition, as you move from $10 to $1000 in your account, there is no difference in the way the market will treat you. Your orders are not noticeable, and your experience will be the same. As a result, it is always a good idea to begin with very small sums, and, naturally, with low leverage, and once you establish your success, you can add more funds to your account as well. Clearly, you should make sure that you choose a broker whose minimum deposit requirements are low and comfortable for a beginner.

Time in Operation

This is related to the safety of the broker. If the firm has been in operation for a long time, it is likely to be safer, because it has been scrutinized and regulated by authorities during its lifetime, and was found to be a legitimate broker. Prolonged existence is of course not an error-free guarantee against fraud and cheating, but it is an additional safety mechanism in addition to the other aspects.

Beginner Support

Finally, some firms are exceptionally friendly to beginners and offer many resources to help the assist in the learning process. Some of them go so far as to provide you a personal assistant just for opening an account. Since this kind of generosity can only be beneficial, a novice trader is always invited to seek brokers which offer such facilities.

To conclude, selection of a good broker is an important step in a trader’s careers, and it should be approached with diligence and responsibility. An incompetent broker may quickly eliminate all chance of success for you, so make sure that you devote enough energy to finding one which is real, honest, and efficient.

The career of a novice forex trader begins at forextraders.com. For all things related to online forex trading, the best online commentary, and analysis is to be found at forextraders.com where traders and experts come together to make sense of the chaotic events of a trading day. Whether to find the best forex brokers (can be found here), or to discover the most efficient strategies, forextraders.com is the gateway to success and riches in a trading career.

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