Tips for Choosing a Good Forex Broker

Hi, My name is Rian. Let me share forex article for today :)

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In this article we will look at some important tools that should be considered when selecting a good broker to invest and work in the forex market.

There control agencies that regulate the operation of recognized brokers, for example if you have chosen a broker located in North America, more specifically in the U.S. have the NFA (National Futures Association) www.nfa.futures.org mediating on customer complaints investors with regulated firms and Future Trading Commission CFTC Comoditie www.cftc.gov regulating trade exchanges and futures market.

Both companies act as vigilantes and guarantee transparency in the operations of the broker and a company that has captured alleged funds illegally from the public has been taken over by one of them or both and no longer exist.

In the specific case of the CFTC you can use the link www.cftc.gov / marketreports / financialdataforfcms / index.htm to find out the broker patrimonioneto and confirm if this exceeds 5 million, which then shows that has a further protection funds as well point out the directions of the CFTC.

To Europe, Australia and some Asian countries, other bodies such as the MiFID (Market in Finantial Instrument Directive) governing investment services to 30 states associated with the EEC (European Economic Community) and SFA regulatory organization organized according to the minutes financial services in 1986, which controls more than 1350 investment firms and futures markets that FSA has a regulatory system that monitors and regulates all forms of investment in these geographic areas.

In general it can be said that the most respected and reliable brokers are in the U.S., Europe, Australia and some Asian countries such as Japan and Hong Kong belongs to China. All this, of course as long as verified by the inspection bodies above according to country and continent.

Another highly relevant parameter to assess the consistency of a broker is the size of your organization, starting with your area of resources human, so a solid broker will have hundreds of employees who will work and provide investor support 24 hours a day. And its physical plant and operations will have offices in various parts of the world. Also a solid and reliable broker can have thousands of active user accounts.

In the U.S., see the registration of brokers through the FCM (Futures Commission Merchant), see more information at the following link: www.nfa.futures.org/nfa-registration/fcm/index.HTML

Types Leverage Provided by Brokers:

They can be classified into low, medium and aggressive. Course the leverage which is another way of indicating the size of the sales profit is directly proportional to the risk taken.

With a low leverage not earn higher profits. However the capital invested is less possibility of loss. The average leverage is taken equal risk where profits can be higher and so it will take major losses on the capital invested in the event that the strategy used in foreign investment according to the trend has not been the most appropriate.

There are brokers that offer leverage of 250:1 100:1 and other older.

This means that for example in the case of 100:1 leverage if I deposit $ 1 in the account, I pay an additional $ 100 to operate and have higher profits.

This shows that the higher the leverage greater chance of winning. But if the trend changes very quickly in time, it takes more knowledge and experience as a currency trader for higher profits and not lose capital.

The Types of Accounts:

Generally brokers offer various accounts: accounts are "Mini" with a minimum investment of USD 250 in adelante.Al operate this type of account leverage is lower. There are other accounts called "Standard" which aperturan with account deposits from USD 2000. And finally the accounts "Premium" which open than previous Holdings. The exact value of each account depend on the chosen broker, country and currencies used to operate the account.

Another important when choosing a broker is regulated that provides graphical tools, as Forex market using technical analysis, which determines through graphs the trend expected in a market position in a period of time. Moreover there are brokers who provide information with economic indicators.

Finally we must clarify that Forex brokers are brokers and pay no commissions for placing orders as in the futures market that require brokers and commission.

To learn all the terminology used in this market and recommend strategies used in the case of not being an experienced trader or operator :

1. Tomar recommended a course to learn to trade the Forex market.
2. Select a broker recommended and regulated.
3. Comenzar operations with minimum capital and take moderate risk.
4. Increase risk capital and the extent of experience.
5. Continuar learning and incorporating new technology tools available.
6. Bucar advice with other more experienced traders or seek an expert trader to manage your account on the platform provided by the broker.

By : Camilo Parrado