How to choose a forex broker?

When a beginner trader decides to invest a small portion of his savings in a highly speculative activity such as the forex, it becomes essential to carefully choose and evaluate the broker to trade with and that is going to take charge of his money on a forex account.

So, what are the parameters that every beginner trader should consider in order to choose the broker that best suits his needs?

First of all, we should create a list of brokers simply via a single search on the internet. Some websites already offer some summary news that allows an initial screening of the list based on the needs of the future trader.

After defining a more restricted list of potential competitors, the trader will have to directly view the website of the broker, not only checking the formal aspect but deeply verifying it concerning the quality and information offered by the website.

After viewing the showcase, the trader should go on with the most important part, studying terms and conditions of the contract, but also soliciting the customer support with some questions that might allow the investor to understand whether if the customer service is excellent or poor.

The reputation is an essential point of this choice and luckily the internet is very helpful to understand (even if the broker is not well known and with a certain degree of reliability) the degree of reliability of a broker over another. Thanks to users reviews, the investor will be able to figure out if his choice also reflects the opinions of those who have already worked with the broker.

Before paying real money to the broker, we should always test the trading platform and now all providers of these services are able to offer to open a demo account. With this account, we will be able to operate with virtual money and mainly test the trading platform and its potential. In this case, the way in which the customer intends to operate is crucial in the choice. The choice of the trader, whether to operate via a classical method by downloading a software or on the web or via mobile, surely makes the difference. Let’s think for example to the importance of choosing a broker that can offer us an excellent App that can be used by smartphones and tablets compared to another one not so technologically developed.

Before making the final choice with the payment of money, we think it is important to evaluate the chances of a good training by the broker. Online seminars and training courses for beginners are just two of the essential elements to learn how the forex market works and the choice of a broker that can transmit certain skills is not so irrelevant.

After making our choice we get to the last event or the opening of a real account with the broker; it’s better to start with a mini account that allows us to deposit a minimum amount of capital without having to commit too high amounts.

All good points. One which I would add is to take a good look past the online platform at the broker behind it. The legal jurisdiction under which the broker falls and whether you can easily access mediation or legal services in that country should anything go wrong is obviously a key point. Whether or not assets are protected by deposit insurance and how much it coves is another key point.

Can anyone refer me to a broker which offers the USDEUR and USDGBP pairs for forex?

It seems very difficult to find a broker which offers ALL major currencies.

Many offer the EURUSD and the GBPUSD pairs, but they can't explain why they don't have the opposite pairs.

I would be happy to hear from TRADERS which trade these pairs and know of a BROKER which offers them.

Thanks and kind regards

Would a USDEUR or USDGBP currency pair provide any benefit over a short position on a EURUSD or GBPUSD pair?

Normally you would just short a currency pair to achieve the opposite effect. For example, a short EURUSD position is the equivalent of a long USDEUR position.

As far as I know, that also applies to swap/rollover.

Cheers