forexplatforms

Tips for choosing a forex broker

Most people wonder what is forex note that foreign exchange is the biggest market in the world. On this market, anyone can take part. You can get into forex for speculation and profit. If you are getting into forex to make profits, there are risk possibilities you should consider. Forex exchange is a two-edged sword it can get money in your pocket or take away all your savings. Therefore you should invest in education before trying to risk all your hard earned money in this venture. If you have already learned a thing or two in forex and you feel that you are ready to try your hand. The next thing to do is to choose an online trading platform that can link you to the market liquidity. When selecting an online company that will be connecting you with the market, there are some points you should note.

The broker

forexplatforms12

There are two types of forex brokers, Market maker, and ECN or STP. These forex brokers connect individual trader to the market in a different way. Market makers connect individual traders to market liquidity by taking an opposite trade as the trader. This types of brokers have been known to hunt stop losses placed by traders and delaying execution of trades. On the other end, ECN or STP brokers give traders a leveled trading ground by connecting a trader to liquidity providers like banks.

 

Check broker review

Before opening a real account with any broker, you can google their reviews. Some online websites give reports about the different brokerage firms available. You should choose a broker that has positive reviews on this sites. You can also check on the individual broker’s website for the reviews written by their clients. Never assume any negative review as this can significantly affect your trading.

Registration and license

forexplatforms1There are different licensing authorities for forex brokers depending on the country the company offices are. You should do a research and know the various known bodies entrusted with registering the forex broker you intend to open an account. After that, you can check if your forex broker is registered with those licensing firms. Failure to do this you may fall into a scam company, and your money will disappear into thin air.

Customer service

Pick an online forex platform that has the best customer care services. An excellent company will have someone ready to help you whenever you need some assistance. Your emails should be replied on time and be notified of any changes happening in the company that may affect your trading.