Everyday more than four trillion dollars is traded with foreign exchange market accounts like forex, making it the biggest financial market in the world. Since there is not a central marketplace in the forex market, most traders need to have a forex broker to conduct most trading activities. As the amount of forex brokers is on the rise, picking the right one means that you could take hours to sift through their page. If you want to find the best forex broker for your trading needs, here are some of the considerations that you should think about.
(The size of the Forex Market compared to the most popular stock markets.)
Forex Broker Account Details
Every forex broker has their own offerings that come with a trading account with them. This includes commission and spread rates. Commission and spread rates are how they make money. A spread is the difference between the bid and the asking price of the trade. Many forex brokers will advertise that they charge no commission, but they make money from wider spreads. There are a number of different popular trading pairs; the most common are USD/EUR and USD/GBP.
The next thing you should consider is the initial deposit that the forex broker needs. Nearly all forex accounts are able to be funded with a tiny, initial deposit. Some accounts can be opened with just $100. If you are to leverage your account, the amount that you can buy is much larger than what the initial deposit was. This is why using a forex broker is an attractive option to new investors and traders. There are many brokers who have micro, mini, and standard accounts, which have different initial deposit requirements.
You should also look at how the forex broker takes and releases money. Each broker has their own funding and withdrawal policies. Some of them will allow account holders to transfer funds online, by a number of popular methods like PayPal or Credit card. Most withdraws are made via wire transfer or check. There also may be a fee for either or both services, depending on the forex broker.
The Forex Broker’s Customer Service
Forex trading nearly never stops, this means that a forex broker should be available most of the time. You should also think about being able to speak with a live broker, instead of dealing with an auto attendant. Depending on them, customer service may be via phone or be a help page on their website. Both have their benefits, and you should be able to pick the method that you are the most comfortable with. There should also be an average wait time on the website, or you should call customer service to find out. This should be a few minutes at the most.