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How to choose your forex broker
Written by: PaxForex analytics dept - Friday, 31 July 2015 0 comments
The forex market has around $5 trillion in average traded value every day, making it the world's largest financial market. Since there is no central marketplace for the forex market traders must select a forex broker to help them conduct their trading activity. There are a large and growing number of forex brokers, and choosing the right one requires cautiously sifting through an overwhelming number of magazine and internet advertisements.
The forex market has witnessed enormous growth in recent years which resulted in hundreds of forex brokers that raced to fulfill the market’s clearing needs. Choosing a forex broker is never an easy task specially when looking for a broker that covers all the important aspects that a forex trader seeks. Before deciding which broker should be your future partner you should take your time researching which broker suits your need best.
There are a large number of forex brokers in the retail forex market these days, each touting its services as the best in the entire market. It can be a daunting task to sort out between them seeking those that are best suited to your needs. When you are choosing
your broker you should carefully consider your own expectations from trading, and compare that with what is offered by the broker, and choose the one that is best suited to your needs.
These are the questions what you should consider asking when you are choosing your forex broker; regulatory compliance, what currency pairs they are offering, spreads and commissions they have, type of accounts, what is the initial deposit, what trading platforms they have, what kind of payment methods they have, how much would it cost you in fees to pay for funding, transferring, withdrawing your money etc.
Other considerations include customization options, order entry types, automated trading options, strategy builders, back testing and trading alerts. Most brokers offer free demo accounts so that traders can try out the trading platform prior to opening and funding an account. A bit of research before committing to a broker goes a long way, and can increase an investor's odds of success in the competitive forex market.