The Forex market is challenging for sure and yet there are a number of ways in which you can earn enough money out here because of its 24-hour long run and the way your profits have a tendency to grow rapidly. Owing to this characteristic feature of the Forex market, the number of brokers joining this market is also growing at a rapid pace. However, choosing a Forex broker wisely is solely your own responsibility and here is a list of things that you might consider.
Regulated or not
The first and the most significant characteristic feature of a Forex broker has to be whether he is regulated or not. This aspect can be checked by taking a look at the NFA membership status of a broker and also the NFA official website to see if any disciplinary action has ever been taken by them against him or not.
Are the spreads competitive?
This is another significant question. A spread is a difference between the asking price and the bid price. You should ideally hire a broker whose spread does not exceed more than 5 pips for the significant currencies. These major currencies include EUR/USD, GBP/USD, AUD/USD, USD/JPY etc.
A broking firm will have a website if it is popular enough. If you want to make out whether the broking firm is the right choice for you or not then the only way out is to learn more about it from the website itself.
Customer support system
A broker should be accessible round the clock, especially if he is a Forex broker. If his user testimonials do not indicate whether he responds immediately or not, avoid hiring such a person. In the Forex market, decisions need to be taken rapidly and if you wait for too long, you might end up making irrevocable losses. Before you hire a broker, do find out if the customer support system of the company is reliable or not.
This feature ensures that you have an amount of money set aside for losses and a target beyond which these losses must not go. While most broking firms have this feature enabled, some do not. This is also a very important step because it will ensure that you do not face losses that go beyond your recovery.
The trading platform of the broker must be competitive and yet be user-friendly at the same time.