Today the daily turnover of the forex market is $3 trillion. There are several forex broker houses whose works are to help make good and profitable investments decisions on behalf of their customers. They actually allow small scale trade among the financial companies and hedge fund managers. There are hundreds of online forex brokers for help but not everyone is good. Legality has always been a question in choosing the online brokers. Here is some facts one can evaluate,
1.Financial Regulation Authority
Whenever the one want to join the forex broker’s legality is the first factor, which knock at the mind first. In this case visiting the online local government financial regulation office is the good idea. Check whether the broker house you are interested in is listed or not. If not, just keep yourself from them as they will be good for nothing and will certainly collapse making you bankrupted. So checking the legality should be given the utmost prority.
2.Real Time Prices
Today the many of the firms are seen to promise to trade with the best price, which is actually not good. It is nothing but a fake statement to attract customers. A good broker house always offers the real time price rather offering the best price. The task of a broker is to make it easy for their customers to deal in the products and services according to the price mentioned on the screen.
3.One to One Interface
A good friend is always on your way. They will never leave you in hesitation. So does good broker houses. They will stick to you with their instant massaging service and online supportive team to help you in any of your problem after registration. They will always guide you from the using the software till the end. And there must have an online voice support service to answer any of your future questions. Any firm devoid of these services should be avoided.
4.Charts and Graphs
Dealing in forex depends on the information. Sometimes, the market shows the same behavior as before. Therefore the past information analysis is an essential element for taking decision. Providing graphs and charts of 20 years of so is one of the most important characteristics of a good broker house which actually allows one to take right decision form the past. Moreover, the cross referenced graphs form a particular pattern to judge.
5.Online Registration
Registration system is another factor to be considered, it is not important though. Often the bogus broker firms offer a long, time consuming registration process that is certainly annoying. A good and reliable broker houses always try to reduce your sufferings. Therefore, they offer a form that consumes ten minutes of your time. You need your bank and credit card or pay-pal details at hand for that. You will be able to trade in the market within few minutes after registration.
6.Start up Capital
The forex broker account fee can be varied from $50n to $1000. Th4re is nothing to be worried about. An old proverb goes, “only put as much in, as you can afford to lose”. The world of forex market is very much volatile and flexible enough to make you a looser within a day.
7.Demo Accounts
The good forex brokers are always concerned to make your money safe. Therefore, they will offer you a demon account that is actually a software program. This is a replica of the real trading where you will play with ‘toy moneys’ for having a feeling of real market situation without the risk of losing money. This software has a platform like a real account providing real life situations and information with real time price. Don’t worries if you don’t want waste your time playing with this don’t worry. It is not mandatory. Just look for the other broker’s software these are totally free.
8.PIP Spread
The numbers that come as the successor of the decimal point is known as the PIP. It is also called the fractional number. Though in real life PIPs are not counted, it has a great influence on forex trading. This is the point which can help to make of lose profit. The fall or rise of the market is often expressed by the PIP numbers. For example, having a 10 PIP spread in oil implies that the price of the oil is $84.10, which will to the selling price up to $84.20. on the other hand, having a spread of $0.5(5PIPs) means the market need 5 PIPs to breakeven. So the lower the PIPs the better the situation.
9.News Bulletins
Having the current news bulletin has a great significance. This section helps to take immediate action according to the situation. For example, Japan has just had a catastrophe. Now suppose someone has lots of money invested in Japan currency. With the help of the current news bulletin section the person just learned about the disaster and converted his investment into other currency to reduce its risk of price falling.
