Unlocking The Forex Broker Selection

08 Aug, 2009 @ 07:40 am ET | by Javier Paz

It is not your imagination. Selecting a Forex broker is a complex process, and it is important enough that it can either make or break your chances for a successful Forex experience. Our goal is to highlight what makes this decision important and offer some key tips to making a good selection.

Forex Datasource estimates that there are approximately 100 medium or large Forex brokers in the world today, each of them with unique features. The rate of new brokers has decreased considerably, though. The retail Forex market is maturing a bit. New regulation and tough broker competition force new brokers to come up with a lot of capital upfront to have a chance to survive the first year of business.

Based on our experience, there are four attributes that a reputable Forex broker should possess:

> Trading technology that is attractive and stable
> More capital than the minimum required
> Qualified personnel
> Responsive management

Furthermore, there are three goals that should guide your selection:

1. Identify your Forex account priorities
2. Conduct a thorough research of brokers (the most tedious part)
3. Select a broker that is strong in the areas that appealed the most to you in step 1