Choosing a broker

Deciding upon a forex broker is one of the biggest trading decision a trader/investor can make.While choosing broker, certain common factors can be kept in mind.

Low spreads
The spread calculated in pips is of course the price difference when a currency is bought and sold. This is how Forex brokers make money –they don’t charge commission –it’s the difference they earn. While comparing forex brokers thus it’s the difference in pips that counts as important as the commission would. The significance of spreads cannot be over emphasized.
Brokers offering Lower spreads will save us money.

Regulation
Most Forex brokers are tied to banks or other lending for the capital to provide the leverage they do. Forex brokers need to be registered with the Futures Commission Merchant (FCM). Forex brokers are also regulated by the Commodity Futures Trading Commission (CFTC). Other relevant financial details and statistics should be available from their website. Its best if the broker is backed by a reliable institute.

Tools and research
Almost all Forex brokers provide the clients with trading platform in at least eight languages with essential features such as technical analysis tools, real-time charts, news and data and many a times also support for trading systems.
It’s a good idea to always check out free trials before zeroing in on a broker. Needless to say the brokers with all the tools and extensive research, commentaries, economic calendars and other suitable features should stand out.