The foreign exchange market or the forex market is the biggest financial market because of its liquidity and regular turn over. Every day, more than 4 trillion dollars are traded here on a daily basis. This is the reason that the foreign exchange market is the largest global financial market. It is larger than the stock or the future market. Every day, more and more people are trading here in an attempt to earn some more money. Trading in this market is risky, as you can lose your real money. It has been seen that the success report of the newbies in the forex market is significantly low. This is because of the reason that they start their trading without proper homework. As a novice trader, you need to do homework. And your homework should include making trading strategies, knowing about indicators, using trading platform, using the charts and choosing the right forex broker. The last option is never the least option, in fact, choosing the right forex broker for yourself can be extremely beneficial for you, as they will assist you to do the rest of the homeworks.
It is a tough task to select the right forex broker for your trading, as there are numerous forex brokers available online, and they tempt you with a number of attractive offers. Hence, you need to be careful during choosing the broker. In order to choose the right broker for you, you need to do a thorough research online. Some of the points are discussed here, which will help you in researching and finding the right broker for your trade (Information credit: www.cornertrader.ch )
No. of clients:
The very first thing is to know how many clients the forex broker has, whom you consider to choose. Also, find out how many clients s/he has dealt with in the past, and how many s/he has at present. It is, in fact, the best idea to get their feedback about the broker. If most of the feedbacks you get from the clients are positive, you can move on to the next point.
Once the broker you consider to choose passed the first test, go for the second test. Ask him/her about his/her qualification. Check his/her expertise level. Experience matters in case of trading. The more years of experience your broker has in this field, the more profitable s/he would be for you.
Once you are pleased with the fact that your broker is experienced enough to offer you a profitable trade, ask him/her about the trading option s/he is offering you. Also check platform, leverage and spread s/he offers to his/her clients. Make sure that the platform and the other trading options offered by him/her are user-friendly.
If your broker passes all the three points above, then you can make your mind to make an account with the broker. But before you finalise, you need to check whether they offer you a demo account for free or not. If the answer is positive, you can select the broker for your next trade.
After doing all the research, you can choose a broker who will trade on behalf of you. But remember, you are investing money, so always keep your eyes and ears open during any trade.