A Beginners Guide To Trading

5 Tips When Choosing Your Forex Broker These days, the list of FOREX brokers is overwhelming and staggering. In addition to that, there are many brokers that you can find over the internet as well, which make the selection a lot more difficult. On this case, if you want to hire a reliable and experienced broker to guide you in FOREX trading, following are few of the things that you must know. Number 1. Regulation – first important thing that should be done is to check whether the broker is regulated by financial service organization or office. Normally, brokers are obligated to show their license number in public and at the same time, they’re mandated as well to bring it whenever meeting a client in person. Say for example that you have requested the registration number of your broker and refused, then this must raised a red flag immediately. Another method you may try is by checking the website of the regulatory body in which the broker works and do inquiries or perhaps, search for him or her. Researching for the reliability and requirements of regulation will be a good idea because there are different regulatory bodies that implement different rules for their brokers.
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Number 2. Reviews – another very effective method in finding a good FOREX broker is knowing what other say about them and their personal experience as well. You can do this easily by just visiting forum websites, through word of mouths or via independent broker review pages.
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Number 3. Type of broker – knowing the type of broker you will be working with is essential like if he/she is a non-dealing desk broker or a dealing desk broker. As a trader, you must finalize on what type is right for your trading strategy. The major difference between the two types of brokers are, dealing desk brokers create internal market as well as trades against clients while a non-dealing desk broker is sending clients trades right to their liquidity providers. Number 4. Liquidity provider list – say for example that you trade with non-dealing desk broker, then it is wise to consider their LP or Liquidity Providers. These are basically financial institutions that are processing your trades. Such creates a big impact on the prices you pay on opening trades so you should not underestimate them. Number 5. Services – services that FOREX broker is offering is another important factor that must be taken into mind. There are actually traders who can’t trade without their FX trading tools which it’s essential to know that not all brokers offer the same service.