A forex broker is some one who forms a link between the currency trading and the trader. In return, they get a commission which is pre-defined, for helping you out on a transaction. You have to pay the broker the fixed commission whether you make profit or loss. So it is important that you choose a forex broker wisely. Some of the things that you should look for while selecting forex broker are as follows.
The domain of currencies in which he operates: A good broker is the one who deals with all the major currencies. This gives you more option to invest. Also, at times, some countries are more stable than the rest. So, as a trader, you need to capitalize on the economic stability of that country. For this reason, your broker should deal with all the major currencies around the world.
Reliability of services: You always want your forex trade broker to provide services 24X7. This is because different countries are in different time zones. It should not happen that you want to do some transaction but your broker is away sleeping. A good broker is the one who takes orders at any given time. Before choosing a broker, try calling the customer care services at odd times just to ensure they respond to your calls at any time. See how they respond to your queries. You really need to be comfortable with the forex broker that you choose because you are going to risk a whole lot of money via those brokers.
Margin of deposits: Paying a deposit is not a rule but there are many brokers who ask for some deposit before you start dealing with them. This is reasonable demand because just in case if the trader is not in a position to square off the deals or is not able to clear his debts, the broker would not have to bear the brunt. And you as a trader can be rest assured as under normal circumstances, these deposits cannot be used by the forex trader broker. A good broker is one who asks a deposit not more $200 to $500.
Software provided by the broker: It should be easy to use and comprehend. Good software is the one that records the transaction instantly without any significant time lag. In a matter of few seconds, the rates can fluctuate quite dramatically and can have a great impact on the final earnings that you make. It is the duty of the forex broker to provide the trader with such software.
Registered broker: To choose a forex broker that is authentic, you can check his profile. He should be a member of Futures Commission Merchant, Commodity Futures Trading Commission and National Futures Association.
It is important that you do your homework before choosing a forex trader broker.