Even if you have immense knowledge about forex trading, your success would depend a lot on how smart your broker is. He should preferably have immense market exposure and knowledge to provide the correct guidance to the customer. Given below are few factors that the customer should take into account before making his selection.
- Market Experience
There is no alternative for experience. An experienced broker can provide quality guidance to the customer and teach him about changing market trends. These brokers may charge higher than inexperienced ones but the place the user’s investments in safer positions. Understanding the forex market requires a considerable time span. Thus, you cannot expect new brokers to do the job for you.
- Trading application and customer support
If a customer is unable to understand the trading application, it becomes quite hard for him to communicate with the broker. In addition to that, he finds it hard to monitor his investments as well. Along with that, 24/7 customer support is an important factor. You should opt for brokers who provide round the clock support through dedicated representatives.
- Account opening balance
Every broker demands a minimum balance for account opening purposes. Before you make your selection, compare the minimum balances required for account opening purposes by different brokers. Intelligent thinking is that you should not select a broker who demands a very high sum for opening the account.
- Interest rate offered by the brokerage firm
There is no point in hiring a broker if no interest is offered on the invested sum of money. Before you make an investment, it is important to confirm the interest percentage with the brokerage firm. An interest percentage of 5 to 7 percent can be termed as healthy.