What are the best brokers for Forex trading? This is first question that most traders will ask when they start. Seems to be a simple question. Unfortunately the answers are not that straight forward. There are few consideration that we need to make before we can determine on the viability of using a particular broker. Let go through few key characteristic that can help out in making the important decision.
The most important part is to make sure they are regulated by the authority. For North America make sure they register with Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM) and a member of the National Futures Association (NFA). This ensure you are protected by regulation. Should the relationship with the broker turn sour, you should have some regulation to fall back.
Brokers are not created equal. There are advantages and disadvantages of each broker. What most important is to make sure the brokers meet your requirement.
Of course we are looking for the best deal. Find brokers that offer the best spread. Make sure there is no additional fee. Worth to note, we should not make the spread as one and only decision making point. There is few more consideration that we need to take into account.
Next major consideration is the brokers support. This is very important. Just imagine if you got stuck due to some software/server glitch and you cannot contact any of the support staff for help. It will drive you crazy. The best way to find out about brokers service is from forums. Look for forums that specialized in forex trading. Surely there are threads that discuss about forex brokers. There are good and bad remarks, so make sure to look into the comments in total.
Another important characteristic to consider is the software being used by the broker. Look for user friendly software. Some are using customize software, so not much support that you can get from third parties. However a common platform likes Metatrader provide extra advantages. There are lots of supports from the outside. Lot of “expert advisor” packages available for Metatrader. This add on package simplify the trading. In fact some of the packages can trade on your behalf, automatically.
The above point can help you on the selection. Do register with a broker of your choice, and use their demo account. This actual trading experience will provide you with all needed information about the broker. Only open the real account when you are comfortable with the brokers.