Without a reliable Forex broker, trading is impossible. They are the link between traders and the financial markets, no matter which market you are trading. It also they who provide prices for buying or selling currency pairs and it is usually this ‘price’ that they compete with in order to sign up as many customers/traders as possible.
The amount of marketing tricks and the sheer volume of brokers out there are staggering and this is why it can be a difficult process to choose one, especially if you are a new trader. After all, most new traders simply want to get started but it is this rush to begin that a lot of brokers thrive on. With this in mind, below is a list of crucial elements people need to consider when choosing Forex brokers.
Promises of making money
Whether you make or lose profit is of no concern to the broker. They make money through the spread or commission on every transaction anyway. However, a new marketing trick has been employed by various brokers that promise you will make money if you use their platform. There is absolutely no meat behind this statement. Do not fall for this. The broker has no control of the market and they are certainly not an education body that teach Forex trading strategies. How you trade is up to you and should be based on what you have been taught in Forex training, not the broker.
Every reliable and honest Forex broker must be regulated. Regulatory bodies are there to protect traders from fraud or unworthy behaviour on their part. Without them, the broker could get away with anything. There are many regulatory bodies around the world but these are the majors within their respective countries:
UK – FCA (Financial Conduct Authority)
USA – National Futures Association (NFA) and Commodity Futures Trading commission (CFTC)
France – Autorite du Controle Prudentiel (ACP)
Italy – Commissione Nazionale per le Societa e la Borsa (CONSOB)
If your broker is within a country that is…