Buying and selling of currencies in the international Forex trade
holds a certain fascination for those understands it. As a beginner it
would be wise for you to go into Forex business with the guidance of a
broker. A broker is a person who has the knowledge of the market and its
mechanisms and can give you suitable advice. To know which broker would
be best for you, you will need to compare Forex broker.
For Forex broker comparison
you will have to through some of the review sites that will give a fair
idea of most of the brokers operating online. When you read up the
reviews of different Forex platforms at Forex broker comparison sites
you will come to know the plus points and weaknesses of each broker.
Safety factor
The money you invest in the currency trade is the most important thing
and its safety is of utmost importance. While you compare Forex
platforms you have to see that the broker should be honest in their
dealing. The authenticity of a broker can be known from the seal of
approval that is given to it by the authorities of the country to which
the broker belongs. For example in USA the broker should be the member
of NFA or CFTC which will show its authenticity and should be safe for
you to select it. In European countries as well as other countries of
the world the brokers get their license and approval from the
authorities. While you compare Forex brokers you may come across great
offers from some of the brokers but if they are not licensed it is best
to avoid them.
Commission charging
When you go for Forex broker comparison you must see the kind of
commission they are charging. The commission of the brokers depends upon
the Bid and Ask price after the trade is finalized. They do not charge
any other fee. Some of the brokers do not take any fee and this will be
to the advantage of the trader. While most of the brokers who charge
commission charge 2/3 pips on Euro/Dollars, the no commission brokers
will charge 3 pips on Euro/Dollars on your spread.
Initial deposit
There are brokers who will let you open a mini account with $50 to $500.
The return from such accounts is not much. Though as a beginner you may
like to invest less in case there is a loss. The other Forex brokers
will ask you make initial deposit of $1000 to $2000 as these deposits
are more profitable in the market. It is up to you as to which broker
you would like to make your deposit with when you do your Forex broker
comparison.
Currency dealing
Another area where you would like to compare Forex broker is the
currencies they are dealing with in the Forex trade. You may have
particular requirement as far as currency is concerned and you will have
to find a suitable broker who will deal with the currency you want.
Customer care
It is necessary for you to compare Forex platforms on the basis of their
customer support. Those which are the best in the market are providing
assistance to their clients 24x7 and taking care of all their questions
and needs. They have to have friendly attitude and give you a patient
hearing while trying to solve your problem. Doing Forex broker
comparison you must know the customer service of a particular broker.
Forex broker comparison
