Source: Forex Cash Evolution
The choice is crucial, and yet many of us do not get it right first time. Having the right broker can actually make a contribution to your profit or loss. So what should you look for in a foreign exchange broker?
1. Investment Level
Look for a brokerage service that’s aimed at clients at your investment level or a little higher. They vary widely from a $25 minimum right up to $10,000 or more . Don’t go for the currency exchange broker with the lowest minimum investment unless you are going to invest the minimum. Each company’s spread and services will be different, and you would like a service that could be a good match for you.
2. Regulation
Check their membership of regulatory bodies. This could give you some protection in the case of the company’s failure. Remember that the regulators will depend upon the country in which the company is registered. The main US regulators are the Commodity Futures Trading Commission ( CFTC ) and the nation’s Futures organisation ( NFA ). Foreign brokers may not be registered with them but will have other alternatives. Check exactly what those are and what protection they give you.
3. Platform
Take a look at the software platform. You can mostly access this in a demo account. Unless you intend to subscribe to a separate technical research service, you’ll need something that offers good charts. Some foreign exchange brokers also offer financial reports alerts which can be helpful. Do not forget to check the order process is clear and easy, to avoid mistakes.