Forex brokers are companies or institutions that offer a range of Forex services like management of Forex accounts and execution of orders. A trader needs to be very careful while choosing a broker.
There are many websites that help new traders compare and choose Forex brokers that can provide the services they need. Like maximum leverage, what is the minimum deposit required, spread of major currencies, number of pairs offered, are mini accounts available depending on how one compares the broker's criteria and commissions charged, there are many factors for points.
Some brokers choose not to charge commissions. This must be determined before signing up with a broker. The past performance of the broker and the word of mouth from other traders must also be considered. A trader must compare the services offered by the broker. Constant updates and newsletters on market trends are services that must be provided to you by the broker. The reliability of the broker is of utmost importance. Many brokers insure their customer's funds against any mishap. Also, the margin requirement or the deposit required for opening or maintaining a position must be checked. For small time investors, many brokers offer mini Forex accounts. This is another area of comparison.
Naturally, the massive size of the market means there is never going to be a shortage of Forex brokers. However, it is selecting the best Forex brokers in Australia that is the most difficult, especially for new buyers and sellers. Here are a few tips that might help you along the way. Legal regulations - Remember that all brokers are required to be a part of the National Futures Association and the process is a highly legally governed one. Any reputable broker will have this listed in their credentials. Therefore, do not go for a broker even if their website is flashy and it looks like they have a lot of experience. Ask specifically if they are a part of the NFA before moving further, since this eventually ensures legal security as well trading success.
Currencies offered - The best FX brokers will allow you to choose from a number of currency pairs, and will usually have the ones that you are interested in. Remember that your broker must offer the most popular currency pairs as well as the ones that you need. Pairs of currencies that are neither commonly used nor needed are not impressive, regardless of their quantity.
Helpful customer service - When reading up on the best Forex broker reviews, make sure you look for comments on their customer service. With constant buying and selling taking place the Forex market works for 24 hours and this is why at all times your broker's customer service must also be available. Make sure you know the type of customer service they provide, their usual waiting time and their staff's ability to answer queries concisely. A quick call to the customer service centre should give you a good idea about this.
Trading tools - The best FX brokers in Australia will provide you with trading tools and platforms that are appealing, helpful and easy to use. Look for a well-designed interface, especially one that has clear 'buy' and 'sell' options as well as an emergency 'close all openings' option. These ensure smooth running and managing even if you are not an expert with managing trading software programs.