These are your top ten tips for finding a Forex dealer. Get the facts!
1. Customer Service
Contacting the Forex broker customer service team is very easy.
Do you have access to online customer service, such as email or chat?
2. Account Size
What’s the minimum amount required to start a trading or investment account?
What is the Minimum Trade Size Required by the Forex Broker?
Can you earn interest on your unused trading equity?
What if you want to use a smaller standard trade size?
3. Transaction Execution
How fast can a Forex broker complete orders?
Do you have access to automatic trading through your Forex broker
You can ask for a free quote at any time.
When will the Forex Broker place you on manual Order Execution if he does not accept your trading style?
4. Forex Broker Regulation
Does your Forex broker keep separate funds for operating and trading?
The Forex broker is regulated by whom? Which authorities regulate the Forex brokers?
5. Trading Margin
What margin is required of Forex brokers?
Are the margins required on standard and mini-accounts different or the same for each?
What happens to the margin? The margin requirements may be different during weekends, depending on currency pairs traded or other factors.
6. Spread The Word
What’s the current spread on the stock?
Do mini-accounts have a higher spread or is it the same?
What is the difference between a variable and fixed spread?
Is the price of news announced different from that on other days? By how much?
7. Forex Broker Commissions
The spread is how Forex brokers make money.
8. Transaction Slippage
What’s the slippage that you see in normal Forex markets and those with rapid movement?
9. Trading Platform
The platform allows you to trade a variety of currency pairs.
What is the Application Programming Interface or API of the platform that you intend to use for automated trading?
When the Forex market changes quickly or after news releases, does the trading platform of your broker work consistently and reliably?
What extra features can you expect from the trading platforms? For example, trailing stops, mobile trading?