How to choose a forex broker

Choosing a forex broker is a very important and crucial moment of the beginning of real trade in this market. Broker is the intermediary between the financial institution and the inter-bank foreign exchange market trader. Its degree of professionalism, reliability, and the terms of trade depends largely on the success of trade. Unfortunately, information on choosing a broker in the forex market for beginners is often served in a biased with a hidden advertisement of a broker.

Which broker to choose and what criteria should be considered?

Terms of trade:
Spread. Check out the type and size of the spread. Some of them are fixed and remain constant for any developments in the market, others - floating, the value of which is variable in situations of heightened volatility and increases in such moments, dozens of times.

The minimum amount of money needed to open a trading account. Is an important moment of choice and depends on the amount of your initial capital. Some brokers have the mini and micro account and open an account with them possible since the 100-200 USD, others offer a minimum trade 1 lot and given the money management system, you should be in the account for at least 10,000 USD. If you want to work with serious West Brokers, the required deposit amount may start at 50,000 USD.

Additional fees. Usually they are available, but must be carefully read the Terms of the contract that would avoid hidden charges. Most brokers there is a commission for the process of transferring your position in a day - Swap, the value of which, depending on the interest rate in exchange traded currency pair, maybe as charged to your account and credited.

Trading platform, ease of working with her and the availability of payment for its use, and the availability of payment analytical information. As a rule, the trading platform, providing quotes and analysts are free, but clarify this point.

Additional terms and restrictions apply. Sometimes brokers, most Western impose additional requirements on the mandatory number of transactions or the amount of cash flow per month and at default - withdraw fee.

The forms and methods of input and output of cash, as well as whether the broker tax agent - that is, whether the withheld tax on earned and the output from your cash. Need to find out whether it is possible acceptance of electronic money, what documents are required and how the contract is signed - in person or through a broker's website.

Reliability:

Terms of the contract. It must contain a description of all the nuances and controversial issues that typically arise in the course of trade, and how to resolve them. Clearly defined responsibilities and obligations of the parties. Must be public regulation of the transactions. If you do not understand, find out all the points at this stage or consult a lawyer.

Legal status and jurisdiction of the company. You have to see where the company is incorporated - in your country or anywhere in the offshore. As you know, in the case of fraud or failure to meet contractual conditions, to sue a company registered in the offshore practically useless.

 Term presence in the market. Look at the history of a broker, the presence of his branch network, the amount of own funds, the amount of customer reviews on the company, the quality of services, the availability of complaints and how they were resolved. If possible, talk to customers you are interested broker.

Licenses. Prerequisite. Foreign brokers all have licenses and Russian brokers in the majority of homes have a gaming license.

Liability insurance. An important indicator - the presence of a broker liable to the customer for the complete safety of cash, which guarantees their return in a number of situations. An additional advantage is the accrual of interest on bank balance amount on the customer's account.

Currently on the market there are a large number of brokers that provide services in the forex market and you can choose the most suitable for your circumstances. Many are trying to choose a foreign broker. In this case, you must remember:

Foreign forex brokers are usually more reliable reputation, but you should not forget about the requirements of making relatively large start-up capital, which is problematic for beginners. It is very important to know not only English, but also trade terminology in English, as the Russian-language support is not at all or limited and trading platform, analytics, contract - in English. In addition, some have a sufficiently sophisticated trading platforms that require serious consideration.

Russian forex brokers are more adapted to the mentality and level traders former Soviet Union. It takes much less start-up capital. All support in Russian, and is widely represented trading platform Metatrader 4 - is simple to learn and intuitive to use.

The best forex brokers in the market have an extensive network of branches and sales offices, including many foreign brokers are in the CIS countries.

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There are many online resources that explain the comparative characteristics of a list of brokers and their ranking according to various criteria and indicators. You can find a list of reliable brokers. When choosing a broker, and then read some of the most suitable to you, then read the agreement, in the event of ambiguities - phoned with the staff of the brokerage company and find them. Get a demo account selected broker, try to run 1-2 weeks, and if you are satisfied - open a real account.