When engaging in forex day trading, it is essential for investors to employ the services of a forex broker. A good forex broker will not only implement your trades for you but will also provide advice and even technical analysis to help you make the best trading decisions.
Previously, a forex broker used to be a bank, as these were the institutions that primarily had access to the forex markets. But with the rise of the internet, an investor can select a broker from anywhere in the world. You can also surf the internet to get the best forex trading platforms in South Africa with the best features.
So how do you choose a forex broker? There are many factors to consider, but an important consideration is, in which country is the broker you are interested in located? Since many brokers are multinationals with offices in many countries, in which country is the broker regulated? Can you accept clients from your country?
Another consideration is the capital available for day trading forex. What is the minimum amount that the broker will allow you to open an account? Some brokers will allow an account as low as one dollar. On the other hand, a prominent brokerage requires a minimum of $ 25,000 to open a business account.
Also, how much does the brokerage charge in transaction fees? Some brokers only allow electronic transfers with high service fees, while others will allow free withdrawals via checks, although it would take a few more days to get your money.
For more serious traders, one consideration is which currency pairs the broker trades in. Some brokers only trade in major currencies, while others allow trading in a wide range of global currencies.
You should make a list of the requirements you want your broker to have. You can then cut this down and test day-to-day forex trading using demo accounts on your sites. You can then start small accounts with brokers who pass your tests.
The bottom line is that traders should select a forex broker that they feel they can trust. If the broker does not pass this simple test, then you should close your account with him and find another broker.