Top Ten Tips for Choosing an Foreign Exchange Broker

The Top 10 Tips to Find a Forex Broker – Here are some of the most important questions that you should ask when selecting a Forex broker. Extra resources!

1. Customer Service

What is the customer service like at a Forex broker?

Is there a live chat option, an email address, or a telephone number for customer support?

2. Account Size

What is the minimum required balance for opening a trading accounts?

How much minimum trading size is required by a Forex broker?

Does unused equity earn interest in your trading account if it is not used?

Can you trade with a standard lot that is different?

3. Transaction Execution

What is the speed of execution by the Forex broker?

Does the Forex broker offer automatic execution?

When can I request a quotation?

Will you have to use manual order execution if the Forex broker doesn’t agree with your trading strategy?

4. Forex Broker Regulation

Is your money insured? Will it be kept separate from the Forex broker’s operational funds and will you receive a tax receipt for this investment?

Does the Forex broker have a regulatory body? What authority is responsible for regulating the Forex brokers?

5. Trading Margin

What is the required margin for a Forex broker?

Does the margin required for mini and standard accounts differ or is it the same?

Do margins ever change? Is the margin required different on weekends?

6. Spread the Word

What is the tightness of the spread?

Does the spread on mini-accounts differ from the standard account spread?

The spread is it variable or fixed?

When news is announced, does the spread of the newspaper change? How much does the spread change if so?

7. Forex Broker Commissions

Do Forex brokers charge commissions? Or is it just the spread that makes them money?

8. Transparency and Transaction Slippage

What are the typical slippages in both a slow and fast Forex market?

9. Trading Platform

What are the different currencies that you can trade on the Forex platform?

Does the trading platform you are considering include an Application Programming Interface, also known as API?

Is the Forex trading platform reliable and consistent during market fluctuations or news announcements?

Which additional features are included in the trading platform? For example, trailing stops, mobile trading?