Just like in any trading situation on the market you can’t dive in unknowingly without exploring all the options regarding brokers and platforms. This means taking the time out to research and test everything from software to special services so that whatever company you go with is in the best interest for you and your investments. Unfortunately, there’s no set guide to let you know which services are the most reliable or which will benefit your particular needs best. Nevertheless, there are a few pointers you can follow in order to get optimum results.
Look For Credentials
One place you’re certainly want to start the search is with the credentials of the companies you’re considering. Although it’s rare, it’s still possible to get into business with a brokerage firm who may actually turn out to be a scam. This kind of issue can be avoided by consulting with the NFA to be sure that your broker is a properly certified retail foreign exchange dealer. Investopedia reports,
In the U.S., a reputable forex broker will be a member of the National Futures Association (NFA) and will be registered with the U. S. Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant and Retail Foreign Exchange Dealer.
If you’re from another country, there are other outlets you can research through for equivalent certification; the internet is a great resource for this.
Payment Methods
Obviously, how much you’re going to pay your broker is an important topic to cover, especially if you’re new to the investment world and still trying to build your portfolio. It might be a good idea to consider using a discount brokerage service of some kind or finding a cheaper platform to work through that offers a little less personalized customer service but the same general options as others. Some brokers take payment from a percentage of profits earned while others use other methods of calculating what you owe, so be certain that you read the fine print before making any promises you might regret later.
Types Of Customer Service
Although you’re likely to find similar options for services throughout the range of different platforms, the types of customer service being offered often differs from broker to broker. Forexfraud.com suggests:
When there are problems with the trading software, or delays, or issues with deposits and withdrawals, you will need to seek the aid of the customer service.
This can come in the form of live help over the telephone, online chat clients, or e-mail, and can be used in case of delay and software problems, or if you seek advice on how to use some of the available tools. The tools themselves can also be perceived as a form of customer service, as some of them are specifically made available for teaching purposes.
Demo The Platform
One such teaching tool is the demo option that some brokers offer through their platforms. These accounts are a great way to learn the way that a particular site and software will function so that you’re not flying blind once you’ve committed to using it. Forex-learning-site.com expresses:
A demo account allows you to test your trading strategy in real time, on the broker’s trading platform, but with virtual money.
You can demo with more than one company if you’re unsure, or want to compare and find a site that you’re more comfortable using. There will be a lot of similarities between most setups, but each company tends to implement tools in different ways, so even if you’re not brand new to these markets you might benefit from taking the time to learning the ropes of any new platform you tend to utilize.
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