So you’ve just bought your first home and you’re looking to expand your investment horizon. You’ve heard about this thing called “forex trading,” and you’re pretty curious to find out how it works. The foreign exchange market is a tricky thing; those wishing to trade need a forex broker to do it for them.
Unfortunately, forex traders are a dime a dozen. How do you know you’re choosing the right one? Here are some tips for choosing the right broker.
- Read Reviews. Don’t be fooled by a tricked-out, professional-looking website. You want a trading site that you can trust. There are plenty of online reviews out there from people who trade commodities online. They’ll give you real, unbiased opinions of their favorite sites, and they’ll share their horror stories, too. Be sure to read a variety of reviews: angry traders who had one bad experience tend to sound off more than customers who were reasonably pleased with the broker.
- Research Account Offerings. One broker may give you thirty account options, while another broker may give you five. You need to research a broker’s account offerings in order to find one that’s right for you.
- Talk Money. Find out how the broker makes money, and find out how you’ll make it, too. How will you be paid? How do you make deposits? Some sites even offer “demo accounts” so you can play around in the market without real financial risk. In other words, these accounts let you “try before you buy.”