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About once a week, I receive an email from a customer at www.ForexSQ.com, asking me to recommend a broker. Actually, selecting the right broker has come to be less difficult over time, however it can still be quite complicated for a beginner. The international web is overrun with articles about this matter, but it all comes down to one single word: faith. If you can’t find a trustworthy broker, then you are indeed going to have problems.
Let’s start by looking at what a broker is. A broker, according to the authorized meaning, is a company or a person, who vends or purchase properties or assets for others. As applied to the Forex marketplace, brokers are the mediator’s traders essential to connect to the international foreign exchange market. You can’t access the market without them, they can’t exist without us.
There are numerous firms that provide these services, so, how do you select the one that’s correct for you? First, before anything else, the broker has to be registered with an official governmental agency. Keep in mind that your first objective in the investment world is not to make money, but to protect your investment. A regulated broker has to achieve certain authorized conditions, current, balance sheets, etc. Generally speaking, they have to be able to provide info about the company’s condition for everybody to see. Moreover, and while it comes to regulations, remember, if the broker is in the similar country as you are, you have more lawful protection.
These days, there is not a single company, outside or inside the Forex world that is too large to fail, but still if you can find a brokerage that can show it has a strong presentation, well, there you are walking in the correct path.
Obviously, there are more things to be wary of: I would say that a solid platform is essential. A website that’s easy to use and great customer service are also essential.
What is not really significant, is the spread they provide. These days, spreads are fairly tight for nearly every currency pair, and the difference among one broker and the next one, at times is less than a pip. You can’t select to whom you are providing your money founded on half-pip variance in the EUR/USD pair’s spread.
