Before opening a forex account pick your broker very carefully. These are the things you should look for in a good broker:
Is the broker registered with a financial authority in the country they operate – like the NFA in the US?
Brokers that are not registered with a financial authority are risky! When registered with a financial authority, there are rules and regulations the forex broker must follow to ensure your safety. Find a broker that is registered with a financial authority to be on the safe side.
Do they offer a fixed spread or floating spread?
You should try to go with a fixed spread, but do not go with the 1 pip spread broker as they are invariably unable to fill your order and ask for repeated quotes. This will make you lose out on opportunities that come once to four times a day. The best is to find a broker with a 2 pip spread.
Is the first deposit minimum really small?
Good brokers will have your interest at heart. They will not try to lure you with small deposits like 25 or 50 USD accounts. In most cases these small accounts lead to losses as there is not enough margin to trade with.
To make it easier for you, we’ve already reviewed many of the Forex Brokers available online today to help you easily find a broker! Find a Broker by reading our Forex Broker Reviews
In addition we’ve put together the followings guides to help you find a broker:
