How to Choose a Forex Broker

The forex broker is the entity around whom the whole apparatus of forex trading is centred. It’s the broker through whom a trader gets initiated into the  world of FX trading; the broker virtually acts as the guiding light to get the rookie or newbie trader acquainted with the pitfalls, cakewalks and short-cuts of the Forex-land. Without a broker, a trader would be lost at sea, with no clue whatsoever as to the next move that ought to be taken at a given time under a specific set of circumstances. 

And, because the role of the broker is very  important, extra caution needs to be exercised while choosing a broker. Some of the things you need to be on the lookout for while choosing a broker forex trading, are:
 
The broker must be registered with a government or extra-government regulatory body. In case they’re not, then there are chances that s/he isn’t a very scrupulous forex broker.
 
It should be checked to determine whether the broker is a market maker (Dealing Desk) or an ECN/STP/ECN+STP one. In case of the former, the traders should be informed that market makers actually trade as counter-parties to the trader and do not connect the trader directly to the liquidity market. They try to stop the client from making too big a profit, lest they (the market maker) have to pay the client. And then there are those market makers who pose as STP in order to catch gullible clients.
 
The amount of spreads offered by the broker is also important. It should be enquired into whether the brokerage offers fixed or non-fixed spreads; and how big are the pip differences. The latter is especially important for traders who don’t like to take risks and reap profits from the difference of just a few pips.
 
The amount of leverage that would be offered by the brokerage is also a point to consider, especially if the trader likes to undertake the risk of trading on margin. 
 

Last, but definitely not the least; one should remember to check the expenses charged by the broker. Now, this is something that doesn’t need to be mentioned separately in an article, as most of you would agree. It is more than obvious that people would go for the one whose rates would fit into their investment budget, over those that charge exceedingly high rates. 

There is, however, a note of caution to be sounded here. Some fraudulent brokers fix their prices at suspiciously low rates to attract and trap customers.  One should learn to identify the red signals, in case such an offer comes along.

Choosing the right broker can be very challenging, I guess traders goes to those brokers who have lowest spreads. I prefer shortlisting the top brokers and opening demo accounts with them, after that you should trade them and while you trade them you will get familiar with their internal processes. Once you are able to compare these brokers internal processes you can easily make a choice among these brokers.

Thank alot for sharing, This is really nice

Frankly speaking, I don’t think there is any rocket science to selection of broker, it’s all simple with which we need to locate regulated company while it should be established and have quality conditions.

Everyone would have different ways toward selection of the broker, but my personal choice is to go with one that’s regulated and have reputation and what’s better than FreshForex? Just check their review section and everything will be crystal clear to all!

If we want to be successful than right broker is extremely vital for selection, but it doesn’t make sense to review broker’s own review section and then say it’s good. I will rather look for outside review and such stuff in order to believe in anything.

I think we all wish to have broker that’s safe because everything and anything matters then onwards.

I can’t look beyond FreshForex, as they are just so good for all right reasons. Not only they offer lowest spread starting from 0, but also have handsome deposit bonus which goes right up to 101% and is trade able in every sense. It’s even more enjoyable with their Mega Rebate program where I can get up to 20 bucks for any trade. They even have cute gift for signup of 1 dollar for traders, so it’s absolutely awesome working under them.

There has been large number of online forex brokers in recent years. But not all broker is same kind. We all know that for profitable and successful trading it is significant to make sure the one you choosing is safe and suit your trading style.

In this market place, if you want to get maximal result first of all you have to ensure most powerful analyzing trade knowledge by learning. on the other hand besides good trading you also have to ensure the credible trading platform , because the broker can affects the result of our trading with certainly.

Forex trading is all about having a good broker. Without a good quality broker a trader cannot do this business well and they can lose their money also. That is why I choose non dealing desk broker.

I could not recommend at any broker which I have not used or verified, because there are almost thousands online broker are available in retail market place and most of them are found to be scams.

I think it is very straight forward thing to select good broker. It is all about having security and facilities, if any broker has that then I feel it is absolutely enough and not much else is really required.