How to Find a Right Forex Broker: Top 4 Steps to Research

Adam Smith

Trader
Dec 14, 2015
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The foreign exchange market is popularly known as the forex market or the FX market. This market is the biggest global financial market in terms regular turnover and liquidity. Everyday, almost 3trillion dollar is exchanged in this market. As this market is an over-the-counter market, there is no physical boundary to trade in this market. Icing on the top is that it is open for 24 hours a day and 5 days a week. This is the reason behind the popularity of this market.

But trading in the forex is not so easy, as the traders need to have a clear idea about this market and the rules or matters that are associated with this market. Forex brokers are the people who can help you understand everything in this market. Hence, no matter if you are a newbie or experienced in this profession, you need to know why forex brokers are required and what their responsibilities are.

Forex brokers can be an individual or a brokerage firm that works as a middleman or mediator and helps the trader to trade forex. An efficient forex broker is necessary for you if you want to be successful trader in the foreign exchange market. The brokers trade efficiently on behalf of you. This thing helps you to be assured that your trade is on an expert hand who can trade far better than you. Although the brokers will trade using your account, you will be the person to take decisions for your trade.

There are a number of forex brokers available online. But finding someone perfect is not so easy. You need to be extra careful before selecting a foreign exchange broker, as the person has to be reliable and efficient in his or her work. A thorough research would be helpful in this case. Some of the prime steps are discussed here that will help you to know how to research online to get a reliable foreign exchange broker for your trade.

Step 1

Find out with how many clients your forex broker (whom you consider to choose) has dealt previously and how many traders he has at present. It will be even better if you can collect the reviews from those clients. If you get positive reviews from maximum clients, you can go ahead. Otherwise, you can move on.

Step 2

If the first step of the research is positive, then go for the second step. Know what his expertise level is. The more the experience, the more it is profitable for you. This is because, they already have gained depth knowledge in this field.

Step 3

Once you are satisfied that your broker is quite experienced, you can go for the next level. Know the trading options that your broker is offering to you. Check the leverage, platform and spread that are being offered by the broker or the brokerage firm. Make sure that you are comfortable with all the trading options provided by him or her.

Step 4

This is the last step of your research. When the above test results are positive, ask him/her if s/he will offer you demo or practice account for free. If the answer is positive, then s/he is the person whom can choose for your next trade.
 

ArslanKemal

Trader
Aug 3, 2016
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good advice. It's really important to be carefull in choosing the good broker, if you don't want to risk with your money
 

jellyeb

Active Trader
Jun 10, 2015
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Can you suggest me good forex websites dedicated to helping new comers to make first steps in this business?
 

Mark Fahad

Trader
Sep 26, 2016
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We the traders should choose the broker that is more appropriate to the concept of trading that will be used; if you love scalping should choose the broker that allows trading concept such as this.
 

Gerrard Hank

Trader
Nov 3, 2016
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Nice post you have there Adam. It very important too for a trader to carry out thorough findings if his broker is regulated in the country where they operate. This boosts your confidence in them and also protects your fund from getting into the hands of scammers.
 
Aug 5, 2021
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User feedback is one of the main things I like to see before trading with any broker. If the majority of people are complaining about withdrawal issues or something else that’s serious, it’s a red flag.