With an average of more than $4 trillion valued trades each day, the foreign exchange market is the world’s largest financial market. Choosing a foreign exchange broker or forex broker is not an easy task since there is not any central market place for the foreign exchange market. Nowadays there are many forex brokers found on the internet and magazines. People have to select sensibly when looking for a forex broker. The foreign exchange broker’s competence, reliability alongside some outstanding features is to be kept in mind. Here are some of the key aspects of a foreign exchange broker that must be observed while choosing the best forex broker.
When it comes to financial registrations and requirements, not a lot of countries regulate nor do they have any regulatory environment which is why it is important to make sure that the forex broker is under observation of a regulatory agency. While selecting a foreign exchange broker, it is best to choose a forex broker whose activities are monitored by a regulatory agency that the forex broker is based in as well as for liberal registration requirements, it is useful to know if the forex broker has any sorts of regulations in an on or off shore country.
Margin & Leverage
Many people look for foreign exchange brokers that have a very high margin or leverage. Although selecting a foreign exchange broker based only on high leverage can produce higher profits but choosing a forex broker based only on this feature alone is not a smart choice. Even if the profits made by the forex broker are substantially high, the foreign exchange brokers with high leverage or margin also involve a very high level of risk. Most of the forex brokers offer a fixed leverage, while others can adjust the margin accordingly to the currency that is to be traded.
Added Value Services
When finding the best foreign exchange broker it is important to look for a forex broker that offers a very good added value services package. An added value service must feature an easy to access real time charts presentations, important economic events and data as well as any news in the foreign exchange market.
Reputation & Reliability
One of the most important features to look for in a foreign exchange broker is the forex broker’s reputation. It is better to have a thorough research on any the forex broker you choose; this involves his dealings with previous clients and his credibility. Another important feature is the forex broker’s reliability, which can be checked up through his clients.