Selecting The Appropriate Forex Broker

With the increasing competition between brokers and forex dealers around the world, they tend to offer a variety of different features and advantages. However, selecting the appropriate forex broker is not easily done by a trader either newcomers or experienced.

 

 

 

There are several main aspects that must be observed as a factor that reflects the capitalization of regulation and reliability and the ability of the brokerage firm. The selection of brokers rely on trading style and what is needed of the trader. You can see the pros and cons of each feature of the broker.

Important things you should know are:

• 1.Ifthedealerorbrokerregulatedproperly?If it has beenregulated,the country from whichthe regulationis published?
• 2.trading Platformused: features andreliabilitasnya
• 3.Capitalization
• 4.Ifthe company isa broker ordealer
• 5.Support tothe client(customersupport)
• 6.The magnitude of the spread,and whetherthere areother additionalcosts
• 7.Type oftrading accountprovided
• 8.additionalservicesprovided
• 9.Policyleverageandmargin call

1. If the dealer or broker regulated properly? If it has been regulated, the country from which the regulation is published?

Forex broker regulation criteria in each country are not the same, and the brokers that its parent company are on a certain area of the country should gain regulation from the State. Investor or trader should know the Agency Regulation (regulatory agency) which is trusted and has provided a regulation on brokers top-tier world. In addition please also note whether a broker earns regulation of off-shore country tends to be liberal or loose.

Countries with reliable regulatory agencies include:

• 1.United States,regulatoryagencyname:CFTC(CommoditiesandFutures Trading Commission),NFA(National Futures Association)
• 2. theUnited Kingdom, the name ofthe Agencyregulation:FSA(Financial Services Authority)
• 3.Germany,regulatoryagencyname:BundeszentralefürFinanzdienstleistungsaufsicht
• 4.Australia,regulatoryagencyname:ASIC(Australian Securities andInvestmentCommission)
• 5.Japan, the name ofthe Agencyregulation:FinancialServices Agency
• 6.Switzerland,regulatoryagencyname:GroupementSuissedesConseilsenGestionIndépendants
• 7.Hong Kong,regulatoryagencyname:FSC(the Securities andFutures Commission)
• 8.Singapore,regulatoryagencyname:MAS(MonetaryAuthority ofSingapore)

The reputation of the regulatory agencies have been recognized the world and has several times carrying out sanctions firmly against brokers who violate the provisions of the regulation, among others, with penalties of fines up to millions of u.s. dollars. Investor or trader should carefully against brokers are not regulated properly, because thus all activities the broker is no one watching and not very safe to invest.

In addition to this investor or trader should also be able to distinguish between the company's permit only with permission as a brokerage firm. Securities firm or forex must obtain permission from the brokerage firm as the body of the regulation.