Forex Broker Services – Part I

Forex brokers provide their services in two ways:

• Phone-in Service: where people can call in and trade. Phone-in trading has its demerits because forex market information changes fairly rapidly. So if you are calling your broker and even if it connects on the first try, the forex market information would already have changed several times.

• Online Brokers: These are brokers who provide clients with an online platform to trade independently. Online brokers provide traders with the opportunity to trade and book profits as and when they realize a real time market movement.

Choosing an online broker is an important step in forex trading. An investor should base his/her decision regarding the choice of forex broker on the following parameters:

Spread: The price differential between a buy and a sell order of a currency pair is generally the amount charged by a forex broker for his services. So, an investor should always opt for a broker who offers cheap services to have better net profits.

Account Opening Fees: An investor should choose a broker who charges minimum fees for opening a forex trading account. One needs to also check whether the broker offers mini trading accounts or not.

Certified Brokers: An investor should only choose a broker who is certified and registered by a region’s central monitoring and/or regulatory authority. The registration and/or certification provide credibility to the broking company with respect to its existence, background and forex operations.

To know the other parameters, click here