Getting in to Forex trading can be a fun filled decision but you need to find the best forex broker to make trading an exciting one. Choosing a forex broker can be a stressful task as there are many brokers out there who claim to be the best one. Be it a HFT broker or an ECN broker, make sure to choose the ones that have good reputation in the industry. Before you choose a particular broker involved in forex trading, it is essential for you to learn about some basics.
Who is an ECN broker?
This broker would provide you the chance to purchase and sell currency pairs through electronic medium virtually, even if you are in any corner of the world. He performs his functions like a stock broker who routes the orders from the platform to a huge market that is backed by different platforms. Such a trading environment is called as an ECN or electronic communications network. If you can find the ECN forex brokers list then you can find the best Forex brokers who would guide you to avail better prices or bids on a preferred platform for a small commission.
Which is the best environment for forex trading?
Always choose the trading service that is registered as a Financial Service Provider and has the number in FSP list displayed on its site to help you find a best HFT broker. Make sure that the commission rate is very low (0.003%) as it would help you earn more. Go for the services with Match Trade System as it offers the guarantee of rendering smooth execution as there would be no rejections, slippages and last looks. It must also be transparent in its activities and must have a model like the Stock Exchange to help you stay assured of transparent trading activities.
Tips to find the best forex broker
If you wish to find the best regulated forex brokers then you have to consider a few pointers.
A flashy or professional looking website does not guarantee that the broker is an NFA member or under CFTC regulation. A broker that is a member of the National Futures Association and subject to CFTC regulations will state this and its NFA member number on its website, typically in the “about us” section and on each web page.
Each forex broker has different account offerings. Brokers may allow account holders to fund accounts online with a credit card, via ACH payment or via PayPal, or with a wire transfer, bank check or business or personal check. Withdrawals can typically be made by check or by wire transfer. The broker may charge a fee for either service.
Currency Pairs Offered
While there are a great deal of currencies available for trading, only a few get the majority of the attention, and therefore, trade with the greatest liquidity.
Forex trading occurs 24 hours a day, so a broker’s customer support should be available at any time. When considering a broker, a quick call can give you an idea of the type of customer service they provide, wait times and the representative’s ability to concisely answer questions regarding spreads, leverage, regulations and company details.
The trading platform is the investor’s portal to the markets. As such, traders should make sure the platform and any software is easy to use, visually pleasing, has a variety of technical and/or fundamental analysis tools, and that trades can be entered and exited with ease.
These days many forex brokers offer standard currency pairs but make sure you choose the ones that provide you exotic currency pair options.