How important are Forex Brokers in Forex trading ?
Who exactly is a broker? A broker is a person or a company that purchases and sells orders according the investor’s decisions in the market. Brokers earn money by charging a commission or a fee for their services to the customers. These brokers are also called Forex Mentor who helps and suggests investor as to which trade they should put in the market according to the market situations. Traders should make sure that they go to safe and qualified broker. They can get to know the criteria of a good broker by attending Forex seminars takes place in UK, US and other parts of the world.
Some of the important criteria to select the Forex Mentor are:
• A FOREX broker needs to be connected with a big financial institution such as a bank in order to provide the funds necessary for margin trading.
• Consult friends and associates to know who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.
• Traders can select few online brokers and contact their Internet help desks to see how fast they react to enquiries and regardless of whether they answer questions to your satisfaction.
• Customer satisfaction and safety are important also. You want to find a dealer who executes trades quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage.
• Traders should know the fees involved in the trades. What is the spread? Is spread fixed or variable according to the account type? Are mini accounts subject to extensive spreads? Are there some other charges?
• Margin accounts are the soul of FOREX trading, traders should make sure they understand the broker’s margin terms before setting up an account.
• Trading software is very essential for the online FOREX trader. Before selecting the broker make sure that they have demo account. Above all, traders look for reliability and the ability to perform well in volatile markets.
Some more information which traders should look for in brokers is their policy regarding minimum account balances, payment of interest on account balances, which currency pairs can be traded and whether a non-standard sized lots can be traded or not.
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