When evaluating potential fields of investment, forex trading is something that is definitely going to be an appealing arena for many. Making money from trading money is the aim of the game when you get involved with forex. As an investor you will able to trade almost every currency that is currently in use, meaning that there is definitely money to be made from forex trading. However, for all the profit that can be made, success will never be a given. Before you can even think about reaping the rewards from forex trading you need to make sure you have the right broker backing you in the market. Forex broker’s come in variety of different shapes and sizes, but the real question is what separates the good forex brokers from the bad forex brokers?
It should be the one thing that goes without saying when you try to find a suitable forex broker. Anyone can open a website and offer trading platform access, but not everyone will be certified to do so. You should always make sure for your own protection that the broker you use has the right financial certification. The authorities that govern such matters change from nation to nation. If you are in the United Kingdom the current certification you should be looking for will come from the Financial Conduct Authority (formerly known as the Financial Services Authority). If the broker you are talking to and looking to work with is operating without this you should steer well clear.
In the 1970s, 1980s, and 1990s this would take the form of word of mouth, but nowadays customer reviews are logged in the annals of time on the Internet. Customer reviews (at a time where many people jump from broker to broker regularly) stand for a whole lot. Take the time to look at what other users have had to say about the broker you want to work with. If it’s less than positive across the board then there will often be a reason for that, and if this turns out to be the case, then it may be worth directing your search for a forex broker elsewhere.
Not everyone is heading into the world of forex with a huge pot of capital. In many cases people will have a far more modest amount to deal with. The last thing you need is to be working with a forex broker who specialises in clients with high account balances. Look around and find a broker who is financially appropriate for your situation and be aware of having “delusions of grandeur” when it comes to forex trading.
It is usually the very first step you take in your forex journey, but it is one you shouldn’t ever understate the importance of. Finding the right forex broker will never be easy given the sheer amount available, but it is crucial that you work with one that is appropriate for your situation. Next time you are on the lookout for a forex broker, take on board all the aforementioned and odds are you’ll find the right one sooner rather than later.
Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.
Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.