Check the Customer Service

You need 24 hour customer service from a broker because Forex is open 24 hours a day. Check if you can contact the broker either through phone call, live chat, or email. When you speak with representatives, determine if they are knowledgeable. Different Forex brokers offer different qualities of customer services. So it would be best if you can check this out before you open an account.

Choose several brokers and try to contact their support service. If they respond quickly then this could be a good indicator that they will respond faster to your needs.

On the other hand, do not trust a broker if your queries cannot be answered satisfactorily. If you also did not get fast replies, then you better look for other brokers. Of course, you should be aware that sometimes, pre sales services are better than post sales services.

Stick with registered brokers and choose those with excellent financial and clean record. Always avoid unregulated brokers.

The NFA seeks to boost its campaign to educate investors like you about Forex trading. They have a brochure called “Trading in the Retail Off-Exchange Foreign Currency Market.” This brochure is worthy of a Pulitzer Prize. Before you dive into the Forex market, the NFA highly recommends that you read this book.

The NFA also has an interactive and self directed program called Forex Online Learning Program. This program explains the intricacies of trading and the shows to you the risks involved in the trading at Forex. You can get the brochure and take the online learning program at no cost to you.

Check if the Forex broker is registered

You need to determine the regulating agencies that exercise authority over the broker. Essentially, the Forex market is an unregulated market. Reactive regulation is the typical practice. This means that you will only get action after you lose your entire savings.

Forex brokers in the United States should be registered as a Futures Commission Merchant. The Commodity Futures Trading Commission exercise regulatory powers over them. The brokers should also be a member of the NFA. These agencies were created to protect you from abusive trading practices, fraud, and manipulation.

You will be able to verify the status of the Forex brokers with the Commodity Futures Trading Commission and NFA. Registration of a broker as well as its membership can be checked by phoning the NFA at (800) 621-3570. You can also visit the NFA web site at www.nfa.futures.org/basicnet/. Here you can find basic information about the broker and its history of disciplinary actions.

How to Select a Forex Broker

You need to have an account with a broker before you can trade at the Forex market. So, how can you spot a broker? Simply said, a broker can be an individual or a company. The broker buys and sells orders based on the decision of the trader. Brokers take profit through commissions or fees for their rendered services.