Forex broker: how to choose one?

You want to start getting involved in the Forex market. One of the first steps is to pick a forex broker. It is suggested to avoid the big banks like J.P. Morgan or Morgan Stanley, unless you have millions of dollars to invest.

One recommended forex broker for day traders is ACM (Advanced Currency Markets). This Swiss company founded in 2002 is a dedicated forex broker specialized in helping retail traders with their online trading.

There are dozens of other brokers though, that service day traders. It’s done almost exclusively online, and in fact ordinary citizens rarely got involved with forex trading at all until the computer boom of the 1980s, and then exponentially more with the advent of the Internet in the 1990s. Since then, forex brokers have multiplied.

As you might expect, levels of reliability and competence vary from one broker to the next. The Internet is rife with unsavory types seeking to take advantage of suckers, so you would do well to investigate thoroughly any broker you are planning to use. Does their Web site look professional and reassuring, or is it riddled with dead links and spelling errors?

Use google to check the broker to see if they have been mentioned in news articles. Ask about their track record. And above all, avoid anyone who promises things that sound too good to be true, or who downplay the financial risks involved in forex trading.

Look for a forex broker that seems to genuinely want your business and your success. Does the firm have customer service representatives available? Is there a phone number you can call to speak to a live person? The Web site should explain things clearly. If the site is full of language that seems designed to go over your head, look for a different broker.

If you set up an account with an online forex broker, it will work like this. First, you must apply for an account, which most brokers allow you to do online. This is to verify your identity and the validity of your bank accounts and financial records. Some brokers also ask you to download their forex trading software, while others let you use whatever software you decide. You will also have to transfer a minimum deposit to your account with your new broker. The minimum can be anywhere from $100 to $2,500.

Ideally, the broker you choose should offer service and support when you need it, but they should mostly simply stay out of the way and let you conduct your business at your own pace. If you can find a forex broker who is professional and helpful, your experience in the forex market should enjoyable and entertaining.