How to find a Forex broker

So you want to get involved in the foreign exchange market, or Forex. You’re itching to get started trading one currency for another and making some profit. But you can’t just barge into Citigroup or Merrill Lynch and start throwing Euros and Yen around. To get going you need to find a Forex broker.

Choosing your Broker

The preeminent Forex broker for day traders (ordinary investors) is Advanced Currency Markets, or ACM. To many people, the Swiss company, founded in 2002, is synonymous with Forex brokerage, trading about $70 billion a month.

There are many, many other brokers, though, who provide service to day traders. This service is almost exclusively conducted online, and in fact ordinary citizens rarely got involved with Forex trading at all until the computer boom of the 1980s. Since the advent of the Internet in the 1990s the number of day traders has risen staggeringly and Forex brokers have proliferated.

FOREX TRADING SOFTWARE

As you might expect, levels of reliability and competence vary from one broker to another. The Internet is riddled with unsavory types seeking to take advantage of the inexperienced, so you would do well to investigate thoroughly any broker you’re planning to use.

1. Does their Web site look professional and reassuring, or is it riddled with dead links and spelling errors?
2. Search Google for the broker to see if they’ve been mentioned in news articles.
3. Ask about their track record. Get testimonials where possible.
4. Above all, avoid anyone who promises things that sound too good to be true, or who downplay the financial risk involved in Forex trading.

Look for a broker that seems to genuinely want your business.
Does the firm have customer service representatives available?
Is there a phone number you can call to speak to a live person?
The Web site should explain things clearly. If the site is full of terms that seem designed to go over your head, then look for a different broker.

Setting up your account

If you set up an account with an online Forex broker, this is usually how it will work. Firstly, you must apply for an account, which most brokers allow you to do online. This is to verify your identity and the validity of your bank accounts and financial records. Some brokers will also require you to download their Forex trading software, while others let you use whatever software you prefer. You will also have to transfer a minimum deposit to your account with your new broker. The minimum can be anywhere from $100 to $2,500.

Summary

Ideally, the broker you choose should offer service and support whenever you need it but should mostly stay out of the way and let you conduct your business. If you can find a Forex broker who is professional and helpful, your experience in the Forex market should be an enjoyable one.

EXPLODE YOUR FOREX TRADING PROFITS