Choosing a good forex broker is an important step as you enter this field. There are a few things which you need to consider as you can zero in on a particular forex trading broker. Choosing a good forex trading broker can make a difference between earning big profits and losing massive sums of money.
The first thing to check is whether the broker is registered at the Futures Trading Commission (if it is in U.S.) or the chief regulating authority for forex trading brokers in the country that broker is incorporated in. This is important as it will let you confirm the record of the forex broker. Dealing with a forex broker who might not be registered may not be advisable.
A good broker will also give you a trading platform that is easy to use and understand. Some trading platforms might be very difficult for a layman to understand. Since forex trading is mostly dependent on quick decisions and execution, getting a trading platform that you can be very comfortable with is extremely important. Most good forex brokers will allow you to trade on a demo account. This will let you get accustomed with the software and also help you follow the market closely up front before money gets involved.
Customer service is one of the key features of every broker. Most people will advise you to feel comfortable with the customer service of the forex broker more than anything else. How they respond to phone calls, clarify questions and answer user queries is very important to decide whether the broker is worth the fees charged. Many people before deciding upon a forex broker do quite a lot of due diligence. Reputation of the forex broker in the market and feedback from other customers on public forums and discussion boards related to forex trading will give a fair idea about whether a forex broker is good enough.
Lastly, forex trading should always be started with one currency pair that you are very comfortable with. This could be USD-EUR or USD-JPY or any of the other more popular currency pairs. Once you finalize on the currency pair you want to trade on, you should get a forex broker who deals with the same currency pair too. The patterns of currencies and their rise and fall change quite often so the broker should have expertise with a few options.