FX Broker
Posted on January 28th, 2009 by Tom Flora under FX Broker.
What are your options when looking for an FX broker?
You might think that one FX broker is as good as the next. But let me explain that is not really the case. A broker is governed by the law of the land and the regulations of the country it belongs to. But then again it depends on whether the broker falls under the "bank" category - with its regulations - or the Futures Commission Merchant (FCM) or Futures Dealer Merchant (FDM) category. The National Futures Association (NFA) has begun taking charge of regulation in the USA. New laws are being put in place to protect the investors.
An FX broker may also offer more than one currency for you to use as your base currency in your trading account. Why does that matter? Don't you want your base currency to be a currency that is going up in value or at least stabile? You often have choices, so think about that when deciding on which broker to use.
We have talked in other pages on this site about spreads that an FX broker can offer you. But also think about location. In some instances it may be wise to have more than one FX broker. Have you considered what happens to your money when one gets shut down or closes its doors? How about having one broker that is overseas? There is nothing wrong with not putting all your eggs in one basket.
How can the average trader find a good FX broker?
Here again I would like to offer my services as a referring broker. Let me know what you want to accomplish with your trading account or accounts, where you live and what your goals are. I am happy to help. I am a referring broker to more than one FX broker here in the States as well as overseas. Just send me an email or give me a call. Deciding on a good broker is an important step.
One more thing about an FX broker - Make sure they will be around once the minimum net capital is raised to 20 million dollars. We will lose a broker or two when that happens in the near future. There are public records to check up on the broker you are interested in. Then again, just ask the FX broker for these details. Choose wisely.
Risk Warning