Let me start with this analogy, before making any major investment in your life like buying a house or a new car
You first have to do research. You can also hire a professional to do research for you in order to make an informed investment decision. What is the forex broker? A forex broker is a company that buy/sell trades for orders according to the traders decisions and charge commissions for their service.
My seven tips for choosing a best online forex broker.
1: I am a big fan of Metatrader 4 forex trading platforms because 65% of online companies proves this types.
Metatrader platforms gives traders a choice to either place their trades automatically using their own preferred expect advisors better known as trading robots or trade place their trades manually.
2: Use a broker which is registered with NFA better known as national futures association or any regulating body in the country that your broker `s main offices are placed. This is very important as you want to do business with a trust worthy company.You do not want to woke up one day and find that your broker has filed for bankruptcy.
3:Check better business bureau to see if any complain has been filed against your forex platform you are busy reviewing.If any check how well or bad did the broker handle the resolution.
4:Trust with your broker is always establish over time,therefore use common sense.It is wise to deposit a small amount of money at first.You will increase your investment capital over time if you treated professionally.
5:Is your broker offer both demo account and real trading account? If he only offers only real account look for another broker which is offering both. The advantage of a demo account is that you will use the trading platform for free while learning how to trade without risking your hard earned money.You will use this also when testing a new trading system you just bought or developed.
6:do you receive legitimate correspondence in the form of e-mails from your broker?Are your concerns and questions handle approximately?
7:is your broker offering a fixed or variable spread? What is the spread during volatile market times? For clarity a spread is a price difference between bid and ask price.
Lastly knowing the right questions to ask and doing the necessary research will increase your chances of choosing the right broker for you. Also check out forex broker reviews sites. I hope the article has been useful to you. Those who want to short cut the search you may click here for popular forex brokers I personally use.