Choosing the right Forex broker is one of the most important things to do once you have decided to start working as a Forex trader. Finding such brokers online is an easy thing to do but choosing the most reliable one will require some effort. Some traders choose the “lazy way” to choose a broker; that means that they make a decision based only on the broker reviews, feedback and stars. Meanwhile, the wiser ones choose a broker in a more professional way. They do in-depth research to find one that will be profitable for their business. If you plan to do this work seriously, the professional way would be the right method to choose. Below are the steps you can do to find a Forex broker professionally:
1. Before going too far in this business, it would be better if you know exactly what broker features you need. Write down the features and services that you expect for trading. You probably need to consider the currencies you will use for trading, your minimum investment, tools and indicators you need for trading, broker reputation and more. List these considerations by their level of importance to make your search easier.
2. Now, use your search engine to find brokers that suit your trading needs. Visit their websites to obtain as much information as possible about them. In this modern and busy life, searching for brokers this way may be time consuming. Traders in the past still used this method but now you can make the search even faster by using a broker search tool. This tool offers rapid search features to help traders find the right broker quickly.
3. When checking the brokers’ website, there are several important things you need to investigate. These things include their terms and conditions, policies, rules and the transparency of the way they do business. Transparency is an important factor to check to avoid scams. Make sure that a broker provides important information like a phone number, physical address and customer support services. The second important thing to check is the website appearance. A good website doesn’t mean that every detail should be interactive and modern. More importantly, it should present a professional look with pages and links that function well. You should also ensure that they have updated their information based on the latest changing trading conditions. Last but not least, make sure to trust a regulated broker; this is one that is supervised by appropriate authorities. For example, Forex regulatory bodies in the US are NFA and CFTC while in Canada they are CIPF, OSC and BCSC.
4. Once you have selected some potential brokers, it will be better to read reviews about them. Use your search engine and type: [a broker name] followed by [reviews]. Your search engine will return hundreds of reviews about the broker. This is good news since you can obtain considerable information about them but often times the reviews overwhelm traders. You will find both good and bad information about the broker and it is difficult to find out the truth. To overcome this problem, I have some simple tips to filter the reviews. First, check the writer of the reviews: is he a novice or a professional trader? A professional trader usually delivers information that is more reliable since he knows the ins and outs of Forex trading. Second, you also need to be more selective with the five-star reviews. Sometimes, these reviews are rated by the broker themselves to boost their popularity and rank. This is especially the case if these reviews often sound too promotional. Just consider these things carefully and judge objectively.
5. Last but not least, you need to find out the broker’s reputation, customer support and transparency. This step is almost the same when you need to find a good bank to save your money. With the right attitude from a broker, you can certainly run your business in a better manner.