Choosing a Forex Broker – 9 Questions to Ask Every Forex Broker

Jun 26, 2008 // 2 comments // Categories: Featured.

Are you searching for a forex broker?

9 Questions to Ask a Forex Broker:

  1. What regulatory authority is your brokerage firm registered with, and in what country?  The NFA (National Futures Association) audits books and is one of the best
    forex broker holding money

    Forex Broker Handling Your Money

    current regulators. The Forex market is currently far less regulated than stocks, bonds, and commodities—and so this is a very important question.

  2. How fast is the order execution?  It should be a second or less than a second. With modern technology there’s no reason for it to take any longer.
  3. Are you attached to any bank or lending institution? Banks are more heavily regulated, which gives extra peace of mind, as well as financial security.
  4. What country is your corporation held?  The right answer is any country with strict banking laws and oversight.  The wrong answer is anywhere else.
  5. What type of a broker are you? Make sure they are familiar with forex brokers. There are Market Makers (MM) and Electronic Communications Networks, and you’ll want to know the difference between the two and which fits your needs best.
  6. What is the minimum account trading size?  This is important to remember to make sure your position isn’t closed out because you’re short on funds to cover.
  7. What is the margin requirement?  1% is standard, but lower is better.  The more control you have, the better.
  8. Is my money held by a public or private company?  You want it held by a public company, because they are insured.  If a company goes bankrupt, you have a better chance of getting your money back.
  9. How long have you been in business and how many clients do you have?  Obviously the longer they have been around, the better the sign.  Having a large number of customers for a long time can also help to allay any fears.

If you ask these questions, you’ll be much more likely to find the right forex broker that works for you.

Do you have any other questions you would ask your forex broker?

From Jason Fielder – Founder, ForexImpact.com

Comment (2) | Leave a comment

  1. Jason
    Do you have in mind a good
    broker?
    Thanks.

    John

    John
    17/04/2011

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