Wednesday, March 27, 2013

Some 15 Important Questions to Ask Your Forex Broker

International Currency Money for Forex Trading
International Currency Money for Forex Trading (Photo credit: epSos.de)
Day in and out, there are so many news bulletins that are saying different things with regards to currency changes and also forex changes. The truth is that, with every change there is one side that has negative effect with the other having positive. That is exactly how the world of business works. Well, if you have been in forex trading for long, you will understand all this and how forex works. However; if you are new to forex trading, there are so many very important and vital tips to consider before you decide to risk your hard earned money trusting a broker. 

Having a reliable and credible broker is splendid and will give you the best of the forex trading world. However; not all forex traders are really worth trusting to safeguard your investments. This is why you need to make sure the questions below are asked and found out into detail before you decide to put your investments in their hands.

  1. For how many years have you been in the forex trading business as a forex broker? This question is important because; this will tell you and give you an idea as to the level of years of experience of the broker and if it is enough for you. 
  2. In what exact condition is your brokerage firm in financially? When this question is asked, there are so many lies you can get. This is why you need to go on to ask if the forex broker will be willing to give you a copy of the company’s earnings and also profits (balance sheet). This will make you know if the broker was telling the truth or lies and mostly, if they are telling lies, they will not want to show you their balance. 
  3. Ask if the broker has a cordial rapport with some of the best banks in the area or even online? This helps to put you in a sound position of your investments. 
  4. Also, make sure you ask who will be quoting the rates. Ask if it is your broker, the bank or a group of banks. 
  5. Also, make sure you find out if the spreads are variable or fixed. 
  6. Make sure you also find out how tight the spreads are. 
  7. Ask if the broker provides Fractional Pip Pricing 
  8. Find out all the restrictions the broker has and also the rules he or she works under. This will help you to invest well. 
  9. Also, find out whether you are allowed to make orders within the Spread 
  10. Find out from your broker is you can make more interest or returns on positive rolls 
  11. Also, inquire if you get more positive rolls at all margin points 
  12. Ask if rollover rates are showed frequently and also find out where if the answer is yes from them. If the answer is no, do not bother investing with that broker. 
  13. Ask if the trading stage permits you to hedge 
  14. Also, ask your forex trader if you can lose more cash than that which you deposited into your account 
  15. Finally, make sure you check out on the credibility and accessibility of client service by the forex broker. 

All questions above are the best of 15 you can use to get to know if your broker is really serious. If you feel you do not want to stress so much, make sure you study the broker and also examine the way in which he or she answers the questions and how willing they are to go on with more questions.


Author Bio:-
Nisha Pandey is a professional writer in forex trading articles and always recommends reading reviews and ratings of forex brokers before selecting one. You should also examine AvaFX ratings and reviews to find reviews written by forex experts.

3 comments:

  1. Great Post! Thanks for post these important questions before chose broker that is easy to understand, definitely these valuable information useful for beginner. In forex trading, broker play big roll so that condition we required to chose right broker, according to my knowledge, always chose regulated, reliable and trusted broker.

    ReplyDelete
  2. The minimum initial deposit to open an account with Capital One Forex is $100 USD or the equivalent in your base currency. Unlike many brokers, Capital One Forex does not charge any fees for the transfer of funds to your account using credit/debit cards and all E-Wallets.

    ReplyDelete
  3. This post is truly inspiring. I like your post and everything you share with us is current and very informative, I want to bookmark the page so I can return here from you that you have done a fantastic job..

    ReplyDelete

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics