Forex Brokers

The forex market is a place of opportunity; of lucrative investments, and of potential. It’s also one that’s loaded with costly management solutions, dirty-high fees, and other potential pitfalls. Like a range of other investment opportunities and arbitrage areas, forex trading is absolutely reliant on a scalable, low-cost brokerage solution. Unfortunately, that can often be quite a tough thing to find.

There are thousands of forex brokers out there, many of whom charge fairly expensive rates to carry out somewhat basic trades on your behalf. Some offer a flat per-transaction fee, benefiting traders in a position to make a lower number of high-value trades. Others focus on a percentage-based fee and commission scheme, taking lower numbers per trade to make up for it with an increase in quantity.

Finding the perfect option for you can take some time, some money, and some trading experiments in order to ‘pin down.’ However, while there are thousands of options out there in terms of brokers, trading houses, and brokerage firms to work with, only one will suit you personally. Every trader in the forex world has different requirements, and not everyone benefits from the same type of broker.

We’ve looked at some of the common issues associated with forex brokers, the common rates and account fees charged by forex brokers, and the type of discount forex broker that most people like to work with, and come away with some interesting information. If you’re searching for a discount forex broker, continue reading, as you may be able to form a great strategy for finding your match.

There are three four key points to consider when searching for a good discount forex broker. The first is experience. Great brokers tend to have experience in the industry. They’re used to markets fluctuating, to currencies shooting upwards and downwards, and accustomed to seeing big gains, bigger losses, and irregular activity. This experience translates into better results for their clients.

If you can align yourself with an experienced discount forex broker, you have a recipe for serious gains in your trading earnings. It’s not just about your experience level, it’s about the amount and value of knowledge you have access to. A great forex broker can help you – even an experienced trader – improve their game, access new opportunities, and make significantly more per trade.

The second key point is timely, convenient, and relatively fee-free payments. The vast majority of forex brokerages have poor payment terms; often terms that suit them rather than you. If you’re an experienced trader that’s managing forex trades at a high volume, ask for better payment terms for your trading accounts. This is also a great way to assess the trustworthiness of a forex broker.

The third is reputation. Great discount forex brokers aren’t going to hide from controversy about the way they do business – they’ll respond to it and set the record straight. In an industry where sudden gains and losses in value occur frequently, disputes are far from uncommon. If you find something that doesn’t ‘fit’ about a forex broker, speak with them about it. They should explain everything.

If, instead of explaining the issue, they run from it, it’s best for you to run from them. The financial industry is, unfortunately, loaded with potential cons and crooks. While a great spread may exist at a forex brokerage, it’s not worth it if it comes loaded with unnecessary risk and shadiness. Pick an experienced, reputable broker that isn’t afraid of explaining how they do business in the public eye.

The fourth, and final, requirement for a great discount forex broker, is support and friendliness. It’s not uncommon to see cliché portrayals of people in the finance industry as being slick operators in the style of Gordon Gekko. While these people do exist within finance, they’re generally not ideal to work with. If finance is your career, find someone that you’d like to work with over the long term.

Why? Because being on good terms with your forex broker exposes you to new opportunities; it gives you access to new information, and it helps you capitalize on events with the assistance of someone that actually cares about your results. You wouldn’t work in an office with people you’re not a friend of, so don’t let personalities slip in your search for success in the forex markets.

There are certainly other things to look for in a great forex broker. Spreads, commission rates, and simple online interfaces are of key importance. However, few of them compare to the options that are listed above. By all means, search for simple interfaces, lucrative spreads, great opportunities, and low transaction fees, but don’t do it at the expense of a much more basic forex requirement.

Above all, remember that the best discount forex broker isn’t necessarily the cheapest or the most flashy, but the one that you feel the most comfortable working with. Treat this job like the career that it is, and don’t work with someone you don’t trust. Finance isn’t just about maximizing returns at the expense of enjoying your work. Find someone you ‘click’ with and work for the long term.