FOREX Brokers: How to Choose One that Suits You
FOREX brokers choices abound in the FOREX market. Since the foreign exchange market is so huge, brokers can hold only a very small portion of it and that is why there are so many. Now the questions are: how do you choose one of them? Do they all work in the same way? What do they require of me? Well, let’s go over some of those questions in the next few lines and hopefully you will have a better understanding when we are through.
One of the things I repeat more often than not in my articles is something most people do not like to do: research. They think it is an unbearable task, but how in earth can you else find out if the broker is being regulated by an authority in the field? Or how wide are the spreads and how much of it do the brokers want for themselves? What about premium services? Yes, research can be tedious, do you know what else a bummer is? Losing money because you did not do research. Go Figure.
After having done some research on what the brokers offer you and comparing them in order to thin down your choices, there is one more thing left. Most FOREX brokers offer demo accounts for you to go and try different market environments and trading platforms. Use them. Do not be afraid to ask anything if you feel the need to, that is the purpose of demo accounts. Once you feel more familiar with your choice then you will be ready for the full experience.
Phony FOREX Brokers: How to avoid them
Given the huge amount of FOREX brokers around the world, keeping all of them in check can be a little difficult. As I said before, you should not really trust on brokers who are not being regulated by an authority. The risk of being scammed by this kind of broker goes higher when you notice that they offer unreal opportunities like making you rich overnight. The length to which these scammers go is incredible, so you have to be on the lookout and not let yourself be fooled.
Do not send money in a non-physical way, ever. Online FOREX brokers may try to rip you off, since being overseas can be a way to stay away from legal repercussions. Check brokers reviews. Some of these from normal traders, people who are reachable and some that are made by well-respected companies that will give you more professional opinions. Find FOREX forums, you need to talk to people, gather some knowledge from their experiences: what do they say about the FOREX brokers you have chosen? People tend to speak more honestly if they are talking directly to you, so use this advantage in your favor
You can never be too careful when you are dealing with money, and if it is your hard-earned money, there is no question about it. Take a much time as you can to learn about what you want and what you need, or what you can get for now so you can work your way up. And if you need help, do not hesitate to ask for it. There are people willing to help you. You just have to reach out there.