How To Find A Dependable Forex Broker
When looking at the list of FOREX brokers today, you’ll surely feel overwhelmed in it. Not only that, there are a lot of brokers you can find online as well, which made the selection more difficult. On that case, if you’re interested in FOREX and would like to hire a good broker to guide you, here are a few things that you must be aware of.
Number 1. Regulation – among the things you have to do is to see and check if the broker is regulated by a financial service organization or office. A broker is often required to show their license number publicly on their page and at the same time, have it available if ever it’s asked in person. Say for example that you have requested the registration number of your broker and refused, then this must raised a red flag immediately.
Checking the website of the regulatory body that the broker is working and inquire or search for that particular broker is another method you can do. Take note that there are different regulatory bodies that are enforcing different policies for brokers and for that, researching the reliability and requirements of regulation will be a good idea.
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Number 2. Reviews – another very effective method in finding a good FOREX broker is knowing what other say about them and their personal experience as well. Visiting forum websites, through word of mouths or via independent broker review pages are the easy ways on how you can do this.
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Number 3. Type of broker – knowing the type of broker you will be working with is essential like if he/she is a non-dealing desk broker or a dealing desk broker. As a trader, you must finalize on what type is right for your trading strategy. The difference between each type of broker is when you choose a non-dealing broker, they will send clients trades right to their liquidity providers while dealing desk brokers create internal market as well as trades against clients.
Number 4. Liquidity provider list – it will be wise to consider the LP or Liquidity Providers if you trade with non-dealing desk broker. These are basically financial institutions that are processing your trades. They do create impact on the prices you pay on opening trades so don’t underestimate this.
Number 5. Services – services that FOREX broker is offering is another important factor that must be taken into mind. There are traders who can’t live without FX trading tools however, not all brokers are offering the same service and for this, you should consider the tools that your strategy needs and if the policy of your broker allow your strategy.