Critical to your trading success will be to select the a trading broker. New traders can get caught in marketing traps, signing up with a non-regulated broker (or worse a scam broker).

Using a service such as the ‘Forex Brokers International Search Tool’, when researching can save a lot of time. Some considerations are highlighted below when opening an account;

Secure the tightest Average spreads

The forex spread is the difference between the Ask(Buy) and the Bid(Sell) price of an instrument. The wider this spread (usually stated in pips) the more challenging it will be to make trading profits. Spreads vary widely by instrument, time of day and broker. Manipulation of spreads is not uncommon, and something all trader are very sensitive to. This has been corrected with more regulation of the industry and brokers.

*The Hydra Lynx Expert Advisors are highly sensitive to spreads, which often determines which strategies are deployed to ensure a steady stream of profits.

A reputable broker will report their average spreads on their websites. Check with a reputable authority on the authenticity of these before signing up.

To regulate or not to regulate – there’s no debate!

If you are new to trading, choosing a regulated broker should be your only consideration.

Brokers are in a powerful position when it comes to the Backoffice operations. With regulation these operations must been transparent, with frequent reporting required from the local regulators.

Another important consideration would be knowing that your deposited trading funds are safe, and kept segregated from the brokers funds.

There are often disputes when it comes to trading. If there is a regulator you have a trusted 3rd party who can mediate and ensure a fair outcome.

Apart from the above, there are many more benefits of a regulated broker. A simple Google search on Broker scams will highlight the proliferation and extent of the problem globally, so be cautious!

Other considerations

Traders can take many other factors into consideration when choosing a broker. The leverage, sign up bonuses, trading assistance, tools/software, latency, available platforms, customer support and more. All of this can be time consuming, but this will be well spent to ensure no nasty surprises later on.

Use the Brokers Search tool, from ForexBrokers.com to find regulated and reputable brokers in your country and get your forex trading journey off on the right foot.

International Forex Brokers Search Tool – ForexBrokers.com

Another great service to checkout is the brokers review on Forex Peace Army