Questions about Forex Brokers.
You need to go through some of the questions you need to ask yourself when reviewing different brokers. About Forex brokers, the inevitable question emerges: “Which Forex brokers are the best?” This article will not answer this question specifically – the “best” broker will be different for traders with varying circumstances and requirements – but highlights the questions you should ask when researching about Forex brokers.
Because the Forex market is an over-the-counter market with no centralized exchange, not everyone receives access to the same prices or quality of execution. Institutions with the largest trade volume and the most solid financials have access to better prices and execution. About forex brokers, the bigger the broker, the better they are able to pass on the benefits of size, better prices, and better execution to you.
Below are some questions you should ask yourself when deciding on which forex broker to use:
- Are you registered with a state securities regulator? In your trading experience, have you ever been disciplined by the SEC, a state regulator, or other organization or one of the stock exchanges?
- When did your business start trading? How many arbitration awards have been filed against your firm?
- What relevant training and experience do you have?
- How long have you been in the business?
- Have you personally been involved in any arbitration cases? If so, what happened?
- Give a description of your typical client. Are you able to provide names and telephone numbers of your long term clients?
- Does the trading platform allow me to hedge?
- Who is quoting the rates, my broker, a bank, or multiple banks?
- In the case that you were not making any extra money, would your suggestion be the same?
- Now that I know your terms and conditions could I insert different clauses?
- Are spreads fixed or variable?
- What is the average (and MAX) spread for each of the currency pairs of interest?
- What are the spreads during very illiquid times, or during times of high volatility?
- Are there commissions per trade, in addition to the spread?
- How is rollover handled?
- What interest rates are used to settle rollover?
- How quickly are my calls answered, and my issues resolved?
- Do I have a dedicated point of contact, or am I always calling a 1-800 number?
- How much or how little leverage will a broker give you? For this factor, there is no “best” or “better” option – it’s simply a matter of making sure your broker offers what you need. If you choose to employ a trading strategy that requires 100:1 leverage – make sure your broker offers it.
- Of course, you are not going to start forex trading with real money right away, right? When you do having a winning strategy and you are ready to trade live, knowing how much risk capital you have to start with makes a big difference.
Read also the following article about forex brokers Forex Brokers point to consider before signing up
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