By Forex Mansion
Finding the best Forex broker for your trading needs can feel overwhelming because of the sheer number of them available online. However, when one is clear about his expectations from his broker, the process is greatly simplified. While there are many sites that are dedicated to rating and reviewing Forex trading brokers, each individual trader must do his due diligence in narrowing the field through trial and error. This means reading about a number of sites, finding the ones that seem to be a good fit and then trying them out. Ultimately, one will find that the broker that gives a feeling of comfort, support and reliability will be the once he chooses because the focus should be wholly on the market and not on the broker itself.
Concerning the Forex market, Brokers should have a wealth of information on the USD considering that it represents 90% of all the currency trades worldwide. Some things to consider regarding the USD as the value of the dollar and the way it is affected by the post-recession America. AC-Markets has some great articles on this phenomenon. The dollar dropping affects the entire market, so some your broker should have news concerning the following American consumer behaviors:
1. Rising Gas Prices. The American consumer is deeply affected by the rising gas prices as explained in this Reuters article. The affects lead to Americans borrowing more money to support their standards of living, or minimally drive less and buy fewer new cars.
2. Americans Buying Foreign Goods for Cheap. Americans buying foreign products rather than American are constantly expanding the trade deficit simply because of cost. This is leading to an even more unstable USD and a question of how this might get turned around, if at all.
3. Spending Instead of Savings. The long-term economy in the United States is increasingly in question as a result of the American proclivity to spend instead of savings, regardless that they are chiefly living on debt. In the short terms, this strengthened the USD for a bit, but too much spending coupled with this spending being from borrowed money is making the USD fall even further. In fact, foreign savings is being brought in to the US and weakening the dollar even further.
4. Scared Americans Do Not Spend Money. The Fed continues to cut rates as a way to get consumers to borrow more money and then spend it. This is building a house on a shaky foundation as too little spending from being scared weakens the dollar almost as much as too much spending with borrowed funds.
However, information is not enough, a solid broker should also be graded according to the following:
• Just as some say that “clothes make the man,” many also say that a broker that does not invest in its public image, website, platform and user interface is a broker that does not care about the end user experience. You have to feel good with the broker websites and platforms because you will likely be spending a good deal of time on them.
• Most sites and platforms also have “practice accounts” for investors to trade with virtual money before they start investing their own money. With so many brokers to choose from, there is no reason to pay exorbitant fees for learning find a trading flow.
• Speed of transactions was once problematic with online trading, because the market moves so quickly that by the time one clicked into or out of a trade, the price may have drastically changed. To combat this, the most reputable brokers will honor trade prices from the moment the user clicks, and not when the click is registered with the site. Any site that does not offer this feature should be crossed off your potential broker list.
• The brokers have understood their competition enough to offer bonuses to investors who open trading accounts with them. Some of the bonuses can be quite a good amount of money depending on your opening account balance, but if there is free money out there then go for it!
• A final consideration for choosing a broker is their customer support system. If you have a question about how the website or platform functions, you should be able to get quick and clear answers without having to wait a very long time. Just as the market moves very quickly, your broker should move quickly as well addressing your concerns and questions. It is in fact in the broker’s best interest to educate their investors so they keep on trading and investing with them and not another broker.
About the Author
To find more information about foreign exchange brokers or inquiry about stock day trading or forex trading, please visit http://www.forexmansion.com.
