The foreign exchange market is the world’s largest financial market that reaches up to $4 trillion average trading value per day. Because there is no central marketplace for foreign exchange markets, traders have to hire a forex broker in order to assist them in their trading activities. You can easily find forex brokers through newspapers and internet ads such as FBS but choosing the right one can be daunting with all the brokers viewing for your attention. To help you with the process, here are four points to help you choose a forex broker.
Check regulatory compliance
Find out if the forex broker that you are looking at has due membership to reputable organizations such as National Futures Association (NFA) and the broker should be registered with the US Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant and Retail Foreign Exchange Dealer. No matter how flashy the broker’s website is, take time to check on the “About Us” tab to determine membership and registration of forex brokers such as FBS.
Type of currency pairs offered
Forex brokers generally offer different types of currency pairs for trading. However, not all forex brokers offer currency pairs that you are most interested in. the usual currency pairs are US dollar/Japanese yen (USD/JPY), Euro/US dollar (EUR/USD), US dollar/Swiss franc (USD/CHF) and British pound/US dollar (GBP/USD).
The trading platform is the trader’s portal to the markets. It is highly important for the platform to be easy to use and to be equipped with essential marketing tools that will help the trader analyze trends and trade effectively. The trading platform should also have clear “buy” and “sell” buttons and even a “panic” button that would automatically close all open positions.
Trading can be done at any time of the day, 24/7 and a trader may need an available customer service that could assist him in case he has some issues or questions while trading. Find out if the forex broker such as FBS has a round the clock customer service that could assist traders anytime.