Forex brokers must their shares are regulated by the Commodity Futures Trading Commission (CFTC). You can normally find this information on the broker’s website or that of the parent company.
You can opt for a broker based in any various countries but that the FSA (regulator in the United Kingdom) and the CFTC (US regulators) are among the most demanding authorities and you so you can turn to a broker whose head office will be in London or New York. As the currency market is an over-the-counter, unregulated market, it is important to turn to a company that is regulated by an authority to which you can rely in the event of litigation.
Some brokers use aggressive marketing and sales techniques with exorbitant bonuses and very high leverage. In any case, regulations that require a Saint Vincent Forex License mark the end of this type of offer.
Forex brokers offer several trading platforms to their customers. It can be a in-house platform developed internally by the broker or third-party platforms of the MetaTrader type. These trading platforms offer real-time charts, technical analysis tools, real-time information and data, and even support for trading.
With the new regulations, broker-to-dealer differentiators will rely heavily on the technologies provided by brokers to their customers. This explains the development of automation tools that will allow brokers to offer their customers more efficient trading platforms are enjoyable to use. The purpose is of course to attract a larger number of traders.
Copy trading is an additional tool made available to customers by some brokers. It allows to base its trading decisions on the financial information generated by other traders with the possibility of automating the replication of decision-making by gurus (experienced and copied traders) whose portfolios are open and the positions taken visible by all.
Before you hire a broker, ask for free trials to test different trading platforms. Commissions and tight spreads for the forex broker. The spread, calculated in pips, is the difference between the price at which a currency can be bought and the price at which it can be sold at any time. Forex brokers typically do not earn commission, so this gap is their only source of income. By comparing the brokers, you will realize that the differences between the spreads amounts on CFDs and Forex are as important as those of the stock brokers commissions.
Brokers must provide a quality service that demonstrates their deep knowledge of the financial markets and by which they will be able to win the trust of investors. Webinars, ebooks, trading videos, regular macro-economic points and articles.
