With the ever increasing popularity of Forex trading and with the addition of more pairs that are traded, the choice of which Forex brokers to use has become more important than ever.
Until a few years ago spreads, software and the service that most Forex brokers provided we’re pretty much the same. With the addition of new technologies and the ability of connecting Forex brokers to liquidity providers that has changed the Forex broker landscape.
1. The first factor in choosing a Forex broker should be that they are in STP or ECN broker.
Many brokers still act in the capacity of a market maker but this can obviously lead to issues with trade execution and with slippage.
2. The second factor should be when choosing a Forex broker or should be regulation.
This needs to be somewhat of a balancing act and that some regulators like in the US have become somewhat overbearing on the restrictions of hedging and also their limitation on leverage.
3. A third factor and one that is not usually considered is the broker’s infrastructure.
It is important to take into consideration that the book the brokers servers are either Nicole location facility or proximity with their liquidity providers so that can minimize the speed of execution.
4. A fourth factor is the Forex broker easily accessible to communicate with. Do they offer a chat system on their website and are they responsive to emails
The customer service of the Forex broker is obviously a very important factor to take into consideration and one that should be judged.
These are just a few of the factors that should be taken into consideration when selecting a Forex broker.
To learn more please visit www.clmforex.com
Disclaimer: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. A Product Disclosure Statement (PDS) is available from the company website. Please read and consider the PDS before making any decision to trade Core Liquidity Markets’ products. The risks must be understood prior to trading. Core Liquidity Markets refers to Core Liquidity Markets Pty Ltd. Core Liquidity Markets is an Australian company which is registered with ASIC, ACN 164 994 049. Core Liquidity Markets is an authorized representative of Direct FX Trading Pty Ltd (AFSL) Number 305539, which is the authorizing Licensee and Principal
