One of the most important tools in a Forex trader’s arsenal is a great Forex broker. With all the options available, you must know what questions to ask to ensure you know your broker, because their tools and guidance can help lead you to becoming a better trader.
Experience
Ask about your broker’s experience. You do not want someone unfamiliar with the market executing your orders. Discuss the Forex brokerage and the length of time they have been in business. Larger brokerages are often able to offer their traders better quotes than smaller ones.
Who Quotes And Executes?
Ask whether or not your Forex brokerage uses a dealing desk or no dealing desk system. Forex brokers can create pricing and execute your orders themselves. They also have the option of letting banks execute your orders, which is referred to as ‘no dealing desk’. The second option often means more competitive rates and fewer restrictions on when you can trade.
Are You Supported?
With a 24-hour market, you need 24-hour support. Ask about the availability of customer support. Should you have trouble with the Forex trading platform, you need to know someone will be there to help you. Live support is always better than automated support. Some brokers offer live chat, so you receive support without ever leaving your computer.
Commissions and Fees
Many brokers work on commission, meaning they earn a set percentage of your profits, while others work based on a set fee per trade. Ask your broker about all commissions and fees, so you know exactly what to expect.