Ten tips for choosing a foreign exchange broker

Top Ten tips to find a Forex brokers – additional info, these are the questions you have to ask before selecting a broker.

1. Customer Service

Is it easy to reach the Forex Broker’s Customer Service?

What customer service options does the Forex Broker offer?

2. Account Size

How much money is needed to open a Trading Account?

What is required of the Forex brokers in terms of minimum trade sizes?

Is there any interest earned on unused capital in your account?

Do you have the option to change your standard trading lot?

3. Transaction Execution

How quickly can the Forex broker process orders?

What is the automatic execution of trades offered by your Forex broker?

How far in advance can you ask for a quote

Manual order execution is the only option available if your Forex broker disagrees with you trading style.

4. Forex Broker Regulation

Are your funds insured and separate from those of the Forex Broker?

Which authority is responsible for regulating the Forex broker’s activities? Which regulatory authority oversees Forex brokers?

5. Trading Margin

What is the minimum margin requirement for Forex brokers?

What is the difference between the standard account and the mini account?

Can the margin change at any time? What if the margin requirement changes at weekends?

6. Spread

How tight are the spreads?

What is the difference between the mini account and standard account?

Does the spread vary or is it fixed?

If so, by how much? Does the spread vary when news announcements are made?

7. Forex Broker Commissions

What is the Forex broker’s profit margin? Does it include commissions, or does the broker make their money solely on the spread?

8. Transaction Slippage

What is the average slippage of a Forex Market that’s moving fast?

9. Trading Platform

With the Forex trading platform, how many currency pairs can you trade?

Is there an Application Programming Interface on the platform if you plan to use an automated system?

Do the Forex broker’s platform work reliably and consistently when there are news announcements, or if the market moves quickly?

What features do you have on the trading platform that are not listed? For example, trailing stops, mobile trading?

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