Choosing a broker can be very confusing, especially for newcomers to forex trading. How exactly do you choose which broker is right for you? Here are some criteria you can follow to help you make the right choice.

1. Guidelines on choosing a forex broker
The forex market is the largest market in the world, with trillions of dollars exchanging hands each day ,
dwarfing even the largest stock exchanges in the world. The players in the market range from the big
boys, the large banks that make up the interbank exchange, to the small fish – usually the retail and
individual traders at the ground level.
While the large banks and financial institutions that participate in the forex market have the luxury of
virtually unlimited amounts to trade, smaller traders can only access this lucrative market through the
use of intermediaries – the brokers. Without forex brokers, retail traders would need ludicrous sums of
money in order to even be a participant.
Brokers provides great value to traders, not only because they allow for more reasonable investment
amounts, but because they also provide the things a trader will need to be successful in the market.
Choosing a broker can be very confusing, especially for newcomers to forex trading. How exactly do you
choose which broker is right for you?
Here are some criteria you can follow to help you make the right choice.
1) Make sure that they have the regulations and the credentials
One of the easiest ways to spot a shady forex broker is if they aren’t registered with any regulatory
body. This is a surefire sign to stay away from that broker. And don’t just accept registration and
credentials at face value, either. Do a thorough background check on the broker AND their
regulatory organizations.

2. 2) Check their fees , spreads and commissions
Ideally, you’d want a broker who charges the lowest (or no) commission, and has the tightest
spreads. This will allow you to maximize your profit since you don’t have to worry about giving a
large piece of the pie to your broker.
3) Check if they offer demo accounts
Demo accounts are standard broker features these days. They allow traders to get their feet wet in
the market without having to actually invest any money. Demo accounts are not only useful for new
traders; they can also serve as testing platforms for veteran traders to try out their latest strategies.

3. 4) Make sure that they are transparent and easy to deal with
Try to get a feel of what the broker is like behind the computer screen or telephone. Make use of
the internet to try and find information on the broker. Do they give detailed answers to your
inquiries? Is their customer service adequate? Having a broker that is easy to deal with can make
your life much easier.
5) See what added features they provide
Many brokers provide information and education on their website. Some even offer free seminars
for local traders. Check what added value they provide, as it can be the difference between two very
similar brokers.