Forex Trade: How to Choose a Forex Broker

Choosing the right Forex broker can be a difficult task. Due to the ever expanding interest in currency trading by the public, the number of brokers is growing fast. Chances are most new traders have no idea on where to start. Finding the right broker requires cautiously sifting through an overwhelming number of Internet advertisements and forums. It is important that you carefully check out every before choosing one that suits your needs.

Here are a few tips on how to choose a Forex broker:

24/7 Support

Forex is a 24 hour market, so your broker should offer support day and night. Before hiring a Forex broker, try to find out if you are going to have a dedicated point of contact and how quickly your issues will be solved. Trading hours on the Forex market vary depending on what currencies you are interested in trading. If you had questions about order execution, you should be able to get an answer no matter what time it is.

Initial Deposit

Search for Forex brokers who require a low initial deposit ranging from $300 to $500 or less. Not every broker has this feature. Some brokers require their clients to invest thousands of dollars, which is not the best option for new traders.


Before choosing a Forex broker, you have to make sure that he is regulated. Most brokers are members of the US-based National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC). Those who are regulated choose to be so, in order to add legitimacy to their reputation. If the broker is not registered with any of these organizations, then you may want to think twice before hiring him.

Transaction Cost

Every time you trade currencies, you will have to pay a commission or a spread. Sometimes you may need to sacrifice a low transaction for a more reliable broker. Because currencies are not traded through a central exchange, the spread can vary depending on the broker you use. Some brokers use a variable spread, while others require a fixed spread.