Before choosing the broker...
Brokers Criteria
General criteria to choose a Forex Broker to trade with:
Due to enormous competition between Forex broker-dealers, they offer different features and advantages. However, choosing a broker is not an easy task for any new or experienced trader.
There are some key aspects like regulation and capitalization which speak for the reliability and competence of the organization and which can be measured following certain objective criteria.
But the real challenge in choosing a broker comes when you have to determine what attributes you are looking for. Along with the outstanding features, you might find a potential weakness, depending on what you need for your trading style.
Here is the list of the questions you may ask yourself before choosing the broker for you:
1. Is the broker or dealer regulated? If so, in which country is it regulated?
Not all countries regulate the same way, nor do they have the same regulatory environment and requirements when it comes to financial registration. Therefore, it is important for any investor/trader to choose a foreign exchange broker that is based in a country where their activities are monitored by a regulatory agency. It is also important to know if the broker or dealer is regulated in an on- or off-shore country, as the latter can be more liberal with registration requirements.
Countries with dedicated regulatory agencies include:
* USA
* UK
* Eurozone
* Japan
* Australia
* Switzerland
All types of traders need to be aware of their broker or dealer's regulatory status and have a clear understanding of the regulatory body that governs forex activity where the selected broker or dealer does business.
Brokers CriteriaGeneral criteria to choose a Forex Broker to trade with:
Due to enormous competition between Forex broker-dealers, they offer different features and advantages. However, choosing a broker is not an easy task for any new or experienced trader.
There are some key aspects like regulation and capitalization which speak for the reliability and competence of the organization and which can be measured following certain objective criteria.
But the real challenge in choosing a broker comes when you have to determine what attributes you are looking for. Along with the outstanding features, you might find a potential weakness, depending on what you need for your trading style.
Here is the list of the questions you may ask yourself before choosing the broker for you:
1. Is the broker or dealer regulated? If so, in which country is it regulated?
Not all countries regulate the same way, nor do they have the same regulatory environment and requirements when it comes to financial registration. Therefore, it is important for any investor/trader to choose a foreign exchange broker that is based in a country where their activities are monitored by a regulatory agency. It is also important to know if the broker or dealer is regulated in an on- or off-shore country, as the latter can be more liberal with registration requirements.
Countries with dedicated regulatory agencies include:
* USA
* UK
* Eurozone
* Japan
* Australia
* Switzerland
All types of traders need to be aware of their broker or dealer's regulatory status and have a clear understanding of the regulatory body that governs forex activity where the selected broker or dealer does business.