How to Choose your

Broker

When choosing your Broker the following factors must be taken into consideration. • Trust in the Forex trading community. • Level of trading experience. • References from past and present clients. • Level of success achieved in daily trading. • Amount of advice to be given. • Convenience • Amount of margin offered. • Speed when handling transactions. • What software trading platform is provided. • Is a trading training course included. All of the above facts are important. In any financial transaction it is extremely important to trust the broker you deal with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience. References from past clients are very important.  If your broker has helped someone else is successful in the past and that person is willing to speak up for him that says a lot.  You can gage the level of success your broker has had by speaking with past clients and seeing how well they did working with this broker. Next, take a look at the amount of advice your broker is willing to give you.  Of course, you make your own decisions and will never take another person’s word for everything, but it is good to have knowledge to work with, and advice from an experienced broker is key information to factor in. Convenience is also impotent. For example, if you live in Cape Town then a Johannesburg Forex broker might not be the best choice. But in the age of the Internet that factor has become less relevant.  With fax, email and sms where you and your broker live has become less important. The amount of margin offered is very important.  Margin is used to leverage your money. A broker who gives you a 50 to one margin is more valuable than one who gives you 20 to one.  And of course responsive speed. Is your broker quick?  Does he return phone calls and emails promptly?  If so, perhaps you can work with him. Your broker will be a trusted advisor and someone that you may be working with for years to come so choose the relationship carefully. Ask friends and acquaintances who are active in trading what broker they use and how they met. It is quite possible that you can get a referral from a friend or acquaintance you trust and acquire a good Forex broker that way. Another good way to find a broker is to search online. There are  message forums, chat rooms, and email groups through portals like Yahoo, Google and MSN(Bing) that contain a wealth of information. Getting onto one of these online communities and asking other people for advice is the way that many people found their broker. If a Forex broker has several clients in an online community who are happy with what he has accomplished for them, then that is a good indication that you might be happy with him as well. Take advantage of the number of people who are on the Internet and join some of these online communities. Ask questions and you’ll probably learn a great deal from the experiences that other people have had. Also find trade journals, magazines and ezines to subscribe to. Read as much as you can about the subject of Forex trading before going into it. Finding a good Forex broker is a job in itself. When you visit with a Forex broker you are in essence conducting an employment interview to determine if this is the broker you wish to handle your financial affairs, so be thorough. Ask plenty of questions. Ask for references. Also check with other people in the office of the broker and see if you would trust them to fill in for your broker if he were not available. See if the broker is willing to offer you a Forex demo account to use, in order to get in some trading practice before you actually start trading your live account. If the Forex broker is able to do so and encourages you then it means that the broker wants educated clients and is not just out for fast profits. See what kind of training and tutoring the broker is willing to offer. A good broker will offer to answer your questions and help you through the learning process. We recommend GT247.COM for South African traders. This broker is licensed by the FSB in South Africa.

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