Every Forex trader needs to open an account with the help of a Forex broker to start trading. Forex brokers help you to open an account. So what exactly is a Forex broker or a brokerage firm? A broker is a company, which places your purchases as well as sells orders, according to your decisions. Forex brokers earn money by charging fee for their services. Deciding on which Forex broker to choose needs a little research and efforts on your part. Your time spent on research will definitely give you the insights of the kinds of services offer by different brokers. When choosing a prospective Forex broker, you need to find with which regulatory agencies, it is registered with.
The trading market is labeled as an unregulated market. In the United States, a brokerage house must be registered as a Futures Commission Merchant with the NFA member and the Commodity Futures Trading Commission. The CFTC and NFA were made to protect the public from manipulation, fraud and offensive trade practices. A Forex trader can do a check with CFTC registration and NFA membership status of a particular broker and check his disciplinary history by checking the site of NFA. You need to look for a broker with clean regulatory records and stay away from non-regulated firms.
In Singapore, a brokerage house must be registered with Monetary Authority of MAS holding Capital Markets Services License. As forex market is a 24 hour market, brokerage house with 24-hour support is essential. You should also check if they can be contacted by email, phone and chat, any day of the week. You need to be sure to check the quality of their service, before opening Forex account. You can contact their help desks by email, chat, and phone and see how quickly they reply to your needs.
If they do not give you a quick response and a satisfactory answer, you should be wary of opening Forex account with them. You need to be aware that sometimes, pre-sales service can be good than post-sales service. With the advance technology, many Forex brokers let traders trade over the internet. Obtain a feel of implementing your trades on the trading platform and try a demo account from some brokers. Trading platform must include actual-time currency exchange rate quotes. Account summary showing your current Forex account balance with realized as well as unrealized margin, profit and loss available and any margin locked in open positions. Choosing correct trading platform brings big profits in Forex trading.