How To Pick A Good Forex Broker

If you are doing forex trading, then you know the importance of a good forex
broker. This is especially true if you are just starting out and do not have
a lot of experience. A good forex trader will work with you and provide the
information and tips you need to make the best trading.

Even though your forex broker will be offering you tips and advice, they do
not make the final decision to buy or sell. You do. Therefore it is
important you know what you want and make your own decision. It is ok to ask
a lot of newbie forex questions to your broker if you are new to forex
trading but make your own mind and accept the results.

As you can see, a good forex broker is important as you will be seeking
his/her advice and you certainly want someone who's the best in the forex
business. So how do you go about choosing one? Here are some tips to help
you

1. Registered Forex Broker.

It is important that your forex broker is a registered member of a financial
institution. Ask for his/her credentials. You want the assurance that he/she
will be able to act on your decision and access the funds needed.

Check with the NFA (National Futures Association) if you doubt your forex
broker is registered.

2. On-call Broker.

Your forex broker should remain in contact at all times.
Whether it be via cell phone, email, instant messaging etc.
Your broker should know forex trading is a 24 hour standby job and
fluctuations in trading can happen quite quickly. Therefore it is important
you can get hold of your forex broker when you need him/her

3. Experienced Broker.

Before you select a forex broker, ask for his/her references.
Call those references and ask them about their opinions on the forex trader.
By doing this, you can assert whether the forex broker is experienced and
whether he/she is able to execute a trade effectively and successfully.

It would be best to contact more than one references to get an accurate
feedback on the forex broker.

4. Cost of Broker

Many people when looking for a forex broker are overly concerned about the
cost. Usually more experienced forex brokers as well as those with a good
track record of successful trades demand a higher price.

My recommendation is to select a few forex brokers that you are comfortable
with, have credentials, have a proven good track record. Once you have done
that, then you can talk about cost.

Sometimes the price for a forex broker with the above qualifications can be
high, however you need to keep in mind, they can help you make more money in
the long run and offset the cost.

About The Author: Ricky runs an forex trading site at
http://forextrading.onlinetradingpedia.com Visit his site today for more
forex trading tips as well as other investing topics such stock investing,
day trading etc