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Guide on choosing a forex broker


Aikhen

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Most investors who trade Forex stocks use a broker. A broker is an individual or a company, who buys and sells stocks according to the investor's wishes. Brokers earn money by collecting commissions or fees for their services.

 

You should check that a broker is registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) as protection against fraud or abusive trade practices. A Forex broker also needs to be associated with a financial institution, such as a bank in order to provide funds for margin trading. Picking the right Forex broker for you will take some work on your part. There are brokers who charge a flat fee and some that charge commission. It may be a good idea to talk with friends and business associates about their brokers. You may get some good leads, and you're certain to hear who to stay away from. There is nothing like word of mouth advertising.

 

If you are thinking of investing online, you could choose several online brokers and contact their help desks. Seeing how quickly they respond to your questions could be key in how they will respond to their customers needs. If you don't get a speedy reply and a satisfactory answer to your question you certainly wouldn't want to trust them with your business. Just be aware that as in other types of businesses, pre sales service might be better than after sales service.

 

Before you choose an online broker get a copy of their online demo account. What features are included? Is the software reliable? Does it offer automatic trading? Are there extra software features that cost more?

 

Before setting up an account with a Forex broker you will need to do further investigation. How quickly will these brokers execute your buy/sell orders? What is their policy on slippage? What are the transaction fees? What is the spread, fixed or variable? What are the margin requirements and how are they calculated? Does the margin change with currency traded? Is it the same for mini accounts and standard accounts?

 

Don't forget to ask about minimum account balances and interest payments on account balances. Make sure that your funds will be insured.

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What should be in a good broker. The first thing you should see its payment processing time. It should be instant or close to instant. If he is processing payments in a week or more, then it is not good for you as you have to do different things with that money.

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It is always important to know that forex broker is regulated and authorized. Just like we have UWCFX which is regulated as well as authorized. It will give new trader a sense of security and he will be trading with more confidence. There are also many thing which you should consider before choosing a broker like spreads.

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I agree with silenteyes but one thing I am a bit discourage in UCWFX is the verification process, they said it will take ages before they will accept or reject the documents presented. I know that they undergo some guidelines to verify an account but customer service is poor either, they should also focus on that issue to make this broker perfect.

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In picking a forex broker, I'd recommend that a trader tries as much as possible if he can to visit the offices of the broker. By doing so, the trader can tell whether a broker is professional or not and also to be sure that the address on their web page is real.

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Yes, we have instaforex in the list already but I think we do want also to have tried other forex brokers. Although, its good to have the comfort broker we have already. That's why its also determine the eagerness of a trader to trade well by having a good forex broker with a good support and good offers.

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Read reviews about them on Google and you will know everything. A bad, scammy one will have plenty on Google so dig them and dig those scammy stories out. I love reading scammy stories. I'll tell you one about fxcm, some traders have a youtube video showing hidden charges that fxcm took out of his account all the time and he was pissed you can research that on Youtube. So they will have like snipping and then high spread so watch out for that. But do read real users reviews cause promo is just sugar coated, not to be trusted, when you start using them you will see the real dirt. 

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You can find a good forex broker recommendations from various sources, but before you invest your money, it helps us to find out more about the credibility of the broker is concerned, both regulations, customer service, security of our funds, servers, financial transactions and much more . It is better to try the performance of the server with the usual free account offered by the broker, like 15 EUR from Armada Market before we trading using our own money.
 

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traders should pay attention with regulation factor. because it explain that broker have legal permission to run the business in a country. in this case, brokers have main office which become sign that they are professional and serious to run the business. moreover, need high cost to become regulated brokers. thus, brokers won't run off easily.

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