When searching for a broker, one should understand some important things about the broker. Different broker offer different kind of services to their clients. It is your job to make sure that the broker you interested to join with do not have bad record, especially bad record such as they unable to clear any withdrawal or any other important process that related to the client’s fund.
You should ask them questions about anything related to their business. Ask them to show you that they are here to help you, and as their future client, it is your rights to know what they can do for you whenever in trouble. Questions are very important to ask because by answering questions, they prove themselves capable of doing this business with you as their long-term partner.
There are some points you want to note from a broker, these points are;
First, you might want to look at the company size. Like the old saying ‘Size does matter’. In looking for reliable forex trading broker, you should take a look at the size of the company. If it is big enough, that means people are putting trust into the company, and because of that, they are able to grow and expand their business worldwide.
You can find two different types of broker. One is called a dealing desk broker and the other is called a non-dealing desk broker. With a dealing desk broker, clients are presented with a fixed price of spreads and costs per order. While the non-dealing desk broker, offer their clients a set of the best price of which are taken at the moment the investor want to trade.
Another feature that you need to look at is the leverage. Leverage is simply a borrowing power every client can use whenever they make transactions. Presently, people can only use 1:50 leverage option if their broker is the US based brokerage company. This new regulation policy was taking effect since November last year. CFTC and NFA who made this new policy giving their reason that this is to protect people fund in the trading account so they do not lose too much in this investment business.