Forex Trade – Intelligent Forex

What to Look For in a Forex Broker

Posted in Forex Brokers by intelligentforex on February 5, 2010

Even though the buying and selling of currencies may sound like an easy task, this is not so when it comes to the real situation on the ground. In fact, for you to make a profit in the forex market, you need to have substantial knowledge on forex trade. However, what about those people who invest in FX as a part time job and have no time to learn about the foreign exchange business? Your answer lies with a forex broker. Similar to in the stock market where a stockbroker gives you advice on shares to invest in, a forex broker will help you trade profitably in forex. A broker will advise you on the current trends, give you vital information that will assist you in trading and if you so wish, a forex broker can transact on your behalf and with your best interests at heart – an intermediary is really the most appropriate term. Nevertheless, before you engage any services of a broker, you should examine the following issues:

Consider the fees of opening an account with the FX intermediary and as well his or her brokerage rates. This you can do by making sure you go through the contract and understand it well. If you don’t like the fees charged, then do not sign the contract until you resolve it. The brokerage fee on the other hand will be the rate charged every time you make a transaction. Such fee will normally be deducted from your account and thus you should always go for a FX intermediary who will charge low rates. Another thing to look at before taking your business to a forex intermediary is communication. Can you pick up the phone and get hold of him/her, email or communicate via live chat? If you cannot, do not settle for him or her. Still on the same matter, are there extra fees charged for this? Please don’t go to an FX intermediary who charges for just about anything.

A good forex broker will also ensure that your life is simpler and not complicated in any way. For instance, the forex broker may have various ways of settling your account fees: for example, you can use credit cards, direct deposit or any other online means of payment transfers. Finally, a genuine forex broker should be registered and should be able to give you such details upon request.


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