The foreign exchange market happens to be the largest financial market in the world. However, the forex market is complicated, read tradeonix reviews to learn more. This means that new traders must choose a forex broker to assist them to go about their trading activity.
There are a huge number of forex brokers out there. Selecting the right means a trader has to painstakingly sift through a large number of online and magazine advertisements.
Factors to consider when hiring a broker in forex trading
Before choosing a broker, a trader needs to decide if he or she prefers a trading platform found
online or a downloaded platform. A trading platform happens to be a trader’s portal to the markets.
This means that the trader should ensure the platform and any accompanying software is visually pleasing, easy to use, and has various technical analysis tools. Also, trades should be entered into or exited from the platform with ease.
Excellent customer support makes an investor’s forex trading experience to be a pleasant one. Also, it directly affects a trader’s forex success. A trader would not want to open a forex trading account with the help of a broker with no high level of customer support.
There are some ways to verify this. All a trader has to do is check if the broker has a chat setting before opening an account. Other things to check include whether the broker has an active telephone number, and how long he or she takes to reply emails.
Currency Pairs Offered
In some cases, there are quite some currencies available for trading. Only a few get most of the attention and are the ones that trade with the greatest liquidity. They include the Dollar/Yen, Euro/Dollar, Pound/Dollar and Dollar/Swiss Franc.
While a broker may offer a wide variety of forex pairs, what matters most is that he or she offers the pairs that the investor or trader in interested in.
Spreads and Commissions
A forex trading broker makes money through spreads and commissions. One who uses commissions may charge a certain percentage of the spread, which is the difference between the forex pair’s bid and asking price.
All in all, most brokers will claim that they do not charge commissions, but rather make money through wider spreads. However, the wider the spread, the harder it is to make a profit. Major trading pairs will often have tighter spreads.