Forex Broker Guide – 7 Important Factors

1. Low Spreads
In forex, spread is the equivalent to commission you pay on each trade. Is the broker’s spread variable or fixed?

Find out how much slippage can be expected in both fast and normal moving markets?

5. Institution and Regulations
The quality of the institution associated with the forex broker (a good forex broker should also be registered with the Commodity Futures Trading Commission).

Find out if your funds are insured!

2. Execution of Orders
How fast is the broker's order execution?

Do they offset client trades - market maker or a broker?

6. Leverage / Margin
What are the leverage choices and account types?

Find out what the minimum trade size is, as well as whether you can adjust the standard lot traded.

3. Trading Platform
This is the software provided for making the trades.

The trading platform is very important, you will use this tool often so you have to be comfortable with it.

7. Forex Trading Tools
The tools and information the broker makes available to you as the trader, for example:

Technical analysis, fundamental analysis, web-base and mobile trading applications, etc.

4. Reputation
The length of time the broker has been in business and his word of mouth reputation.

By finding out what others have had to say about their experiences with particular brokers you’ll have a better idea about overall customer service and support response time.