It sounds like a strange way of choosing someone who is going to handle a substantial amount of our money but it often seems like this is the way the novice Forex trader makes his choice. Even before you start trading you have to make an important decision, and that's who your Forex broker is going to be. You might think that a decision like this would make a person investigate, ask questions and be careful. However, so many people fall into the trap of Forex scams and questionable Forex brokers that has given the whole industry a bad name, and it should not be so. The Forex market is a wonderful and legitimate way to make a living; but like any industry, it has its thieves and scammers. The first rule is the obvious one: "If it seems too good to be true ... it probably is."
The first thing you want to do is make sure the broker suits your needs. Make sure you offer a demo account; find out your minimum balance and minimum trade; whether or not they have live support or everything is done via email. That kind of things. Very basic things, and most Forex brokers will take care of that. Even the most suspicious.
Regulated Forex Brokers
But here is something you will not have thought of. Make sure your broker is set. Find out which regulatory agencies are registered. They must register with the Commodities Futures Trading Commission (CFTC) as Futures Commodity Trader (FCM). The CFTC and the NFA (National Futures Administration) were created to protect small (and large) traders in fraud, scams and other unpleasant practices from wrongdoers. Use your services and information. They have websites and phone numbers if you have any questions. The Forex broker you choose will have your money in your hands. You should feel completely comfortable with that before you give a penny.
Do not get caught up in flashy websites and bold promises. This is not a casino you are about to enter. This is a business, and like any business, due diligence should be done. Take your time and get answers to all your questions. Then, after you have had all the answers to your questions, find out from other Forex traders what questions you might have missed. There is no such thing as being too careful when choosing the right Forex broker for you.
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