How to Find An Online Forex Broker

By Charles Hopkins Published 10/14/2006 | Finance

Finding an online Forex broker is a whole lot easier than finding one offline. There are a wealth of options available for you to choose from, as online Forex trading is becoming extremely popular. Getting an online Forex broker is much smarter than trying to learn the ropes by yourself.

Just like with anything in life, Forex trading requires a whole lot of know how in order to become successful. The Internet helps locate a Forex broker in a number of ways. Many times simply searching in your favorite search engine for a Forex broker will give you many results. This however isnt always the best way to find the right one for you. Since there are many brokers out there you will be bombarded with multiple results, all of which will claim to be the best of the best. For this reason alone it is not recommended that you try search engines for finding a Forex broker. You may find what you are looking for but you also run the risk of finding inexperienced brokers who are new to the game and only looking to make quick money by managing your money in a poor fashion. There are also many brokers out there that have no clue what they are doing, and are just in the business to make that small percentage from you. Beware of hiring a broker that offers you no history information about how many clients they currently handle. Since they are going to be managing your money it is important that you feel comfortable letting them be in control of something as valuable as your investments.

Many times the best way to find an online Forex broker is by word of mouth. If your friends or family use them then they might just be good for you. Not to say that you should only use a broker that someone else is using, but this will let you know how well he or she can manage other people's accounts. This will also give you a little inside information about the broker before you ask them for information. As each broker is essentially trying to work with you and gain your business, they may be a little biased about their skills in comparison with another firm. If talking to fellow traders does not yield any results, then it is up to you to do the searching. Look for a Forex broker that is attached to a well-known institution. Most of the time a decent broker is attached to large lending institutions or banks. All online Forex brokers who are legitimate are also registered with the FCM and the CFTC. If they are not registered with these two organizations, do not consider doing business with them, as you may be putting your money in serious risk.

Finding an online Forex broker may take a little time, but it is time well spent. Remember that just because someone recommends one broker over another doesnt mean that you should immediately begin to do business with them. Make an informed decision based on any information that is supplied by fellow lenders and recommendations. Everyone invests with different amounts of money, and this is why it is important to know that each Forex broker is different.