At least once a week, here at ForexSQ I get an email from an user, asking me to recommend him/her a broker. To be honest, choosing the right broker has become less complicated over time, but it could still be quite tricky for a beginner. The worldwide web is overflowed with articles about the issue, but you can put it all down to one single word: trust. If you can't find a reliable broker, then you are doing something wrong.
Let's start by understanding what's a broker. A broker, according to the official definition, is a person, or company, who "buys and sells goods or assets for others." When it comes to the FX market, brokers are the intermediaries traders need to connect to the immaterial worldwide foreign exchange market. You can't access the market without them , they can't exist without us.
There are plenty of firms that offer their services, so, how to choose the one that's right for you? Well, before any other thing, the broker needs to be registered before an official governmental agency, to be regulated. Remember, your first objective in the investment world is not to make money, but to protect your capital. A regulated broker has to fulfill certain legal conditions, present, balance sheets, etc. Generally speaking, they have to be able to provide information about the company's health for everyone to see. Also, and when it comes to regulations, remember, if the broker is in the same country as you are, you have more legal protection.
These days, there is not one single company, inside or outside the forex world that is "too big to fall," but it you can find a brokerage that can prove it has a strong performance, well, there you are walking in the right path.
Of course, there are couple of more things to take care off: I would say that the next thing you need, is a solid platform. A responsive web, easy to use that provides a good number or assets. A great customer service it's also important-
What is not actually relevant, is the spread they offer. These days, spreads are quite tight for almost every currency pair, and the difference between one broker and the next one, sometimes is less than a pip. You can't choose to whom you are giving your money based on half-pip difference in the EUR/USD pair's spread.
Risk Disclosure Analyzing your financial situation, you should decide whether you should start Forex trading or not. Rates of currencies can go down or rise higher any day, any hour, any minute so you should risk only that much which you can afford to loose.
Editors’ Picks
EUR/USD flirts with daily highs, retargets 1.1900
EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.
GBP/USD remains well bid around 1.3650
GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.
USD/JPY edges up above 153.50 with all eyes on US CPI figures
USD/JPY appreciates above 153.00 but remains on track for a 2.4% weekly loss. Trading volumes remain subdued on Friday, ahead of the IS CPI release. The Yen remains supported by hopes of a stable government and calls for further BoJ tightening.
Editors’ Picks
EUR/USD: Yes, the US economy is resilient – No, that won’t save the US Dollar Premium
Some impressive US data should have resulted in a much stronger USD. Well, it didn’t happen. The EUR/USD pair closed a third consecutive week little changed, a handful of pips above the 1.1800 mark.
Gold: Metals remain vulnerable to broad market mood Premium
Gold (XAU/USD) started the week on a bullish note and climbed above $5,000 before declining sharply and erasing its weekly gains on Thursday, only to recover heading into the weekend.
GBP/USD: Pound Sterling remains below 1.3700 ahead of UK inflation test Premium
The Pound Sterling (GBP) failed to resist at higher levels against the US Dollar (USD), but buyers held their ground amid a US data-busy blockbuster week.
Bitcoin: BTC bears aren’t done yet
Bitcoin (BTC) price slips below $67,000 at the time of writing on Friday, remaining under pressure and extending losses of nearly 5% so far this week.
US Dollar: Big in Japan Premium
The US Dollar (USD) resumed its yearly downtrend this week, slipping back to two-week troughs just to bounce back a tad in the second half of the week.
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