Setting up an account with a forex broker is the first thing to do before trading in forex. In its simplest definition, a broker is a person or firm that purchases and sells orders depending on the decision of the trader. They earn income by collecting commissions as costs for the service they render.
The number of brokers providing online services may give you an overwhelming feeling. Choosing a broker requires minimal research on your end, but the time you spend will provide you information into the available services and fees collected by different brokers.
In choosing a prospective broker, check to which regulating company the broker belongs. Forex is considered an “unregulated” industry, and it typically is. Regulation is basically hasty, which means that only will registration be implemented once your entire investment has already been consumed.
Since Forex is an all-day, all-night market, 24-hour customer support is a must. The broker should be reached through phone, electronic mail, chat and others. Also, the representatives must be knowledgeable. The extent of support can dramatically change from one broker to another, so be sure to find it out prior to setting up your account.
Select several brokers and call their help desks. The promptness of their response to your queries can be a valuable gauge on how they will react to your needs. If they don’t give a quick response to your questions you definitely won’t rely on them to handle your business. Be aware that like other types of businesses, before sales service might be better than after-sales service.
Online Trading Platform
Many, with the exception of some, brokers of forex offer convenient online trading. The order entry and exit points are the framework of any trading platform. The software for trading is very vital. Try out a demo account offered by few online brokers in order to get a taste of the available options.
Majority of trading platforms offers Web-based, Java-based or client-based software which can be ran on your computer. The version you will use is a matter of personal choice.
Software that is Web-based resides on the web site of your broker. There is no need for installation on your computer and logging on from any computer with Internet connection will be relatively easy. On the other hand, software that is client-based will have to be downloaded and installed into your computer. However, transactions will be limited only to that computer.