How much can I afford to invest?
In all cases, the amount of money that you can afford to invest will determine what type of trading account (i.e. micro, mini, or standard) you can open. Not all brokers will offer all the said types of accounts, so determine which type of account you want (and can afford) and then look for a broker who offers it.
Is this broker regulated and licensed?
When looking for tips on how to select a forex broker, many traders will advise you to first check the broker’s licensing and regulation status. Any reputable Forex broker is regulated and licensed by the proper authorities and they will always display their license and regulation numbers in their websites. If they don’t have any of these, you should definitely stay away from them. There are also different ways to check if the licenses and certifications presented by the broker is legitimate, like cross-referencing their regulation numbers with the Financial Conduct Authority or FCA website (or whichever regulating body the broker claims to be registered with).
Are there learning resources and materials available?
There are tons of information about Forex trading strewn around the internet, and going over each one of them can be quite overwhelming. As a beginning Forex trader, it would be much easier if you can find all the learning materials and resources you want in a single, organized site. Look for a broker who offers comprehensive yet easy to understand learning materials and resources. Forex brokers that offer in-depth reviews and analyses of Forex news is most definitely recommended.
What do other people say about this broker?
Forex brokers will always put their best foot forward in order to attract more traders into signing up with them. This is why you shouldn’t easily believe what they put on their websites. Take some time to read real and actual user reviews from forums that pertain to topics like “how to choose a forex broker” and the likes. Along this line, be sure to filter legitimate reviews from fake ones. Look at the reviewers’ language and the content of their reviews and discern if they really know what they’re talking about. If the review sounds like a sales pitch, it probably is.
Forex trading in itself is difficult, and choosing the wrong broker will only make matters worse. Thus, due diligence when it comes to researching the right forex broker is necessary so you can avoid being victimized by unscrupulous and shady brokers. Read up on more articles about how to select a forex broker or how to choose a forex broker so you can make a more informed decision.
