Sunday, April 19, 2009

HOW TO CHOOSE AN ONLINE FOREX TRADER

Before trading Forex you need to set up an account with a Forex broker. What exactly is a broker? In simplest terms, a broker is an individual or a company that buys and sells orders according to the trader’s decisions. Brokers earn money by charging a commission or a fee for their services. Deciding on a broker requires a little bit of research on your part, but the time spent will give you an insight into the services that are available and fees charged by various brokers.

When selecting a prospective Forex broker, find out with which regulatory agencies each dealer is registered. The Forex market is label as “unregulated” market, and it basically is.

In the United states a broker should be registered as a futures commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and a NFA member. The CFTC and NFA is here to protect the public against fraud, manipulation, and abusive trade practices

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