Let us look at the term “broker”. What exactly is a broker? A forex broker is simply an individual or a company that buys and sells order on behalf or according to the trader’s decision. To trade forex one needs to open an account with a broker, but deciding on which broker to open an account with requires a little research on your part. So what then should you look out for, what services are the broker offering? What fees do they charge? Hey! Slow down…
Firstly, when selecting a broker, find out if it‘s regulated and by which agency is it registered with? You can do this online. In the United state for example, a good broker is registered as a futures commission merchant (FCM) with the commodity futures trading commission (CFTC) and a NFA member. The reason behind this is to protect the public against fraud, manipulation and abusive trade practices put up by brokers with dirty records and unstable financials. So please stay away from such brokers.
The second thing one needs to look at is “customer care”. How user friendly is the broker? Do they have a 24 hour support? Can you contact them by phone, email, or chat! How quickly do they respond! Good quality support can vary from broker to broker, so please check them out before opening an account
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