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The foreign exchange market, or forex, is not a centralized marketplace and anyone can try their luck with currency trading. However, success or failure in this highly competitive business will depend on the ability, competency, knowledge, and experience of your forex brokers. Choosing the proper one can be very difficult. Today, a great number of people and companies present themselves as experts in this field, and the majority of them have flashy web sites and great "success" stories to relate. They promote themselves in every available place and situation—web sites, online magazines and blogs, billboards, TV commercials, print newspapers, and radio shows. These so-called experts are everywhere.
Although this type of media saturation can be overwhelming, it is understandable that the profitability of the phenomenon of forex trading would attract such interest. There is big money in this game. In fact, the amount of money involved in the forex market is hardly conceivable to most people. According to the latest data, people and companies around the world trade more than $4 trillion in the foreign exchange market every single day. So the next time see an ad for forex brokers, you will know they are just one of many trying to profit by currency trading.
However, the great opportunity for earning (or failure) means you have to do due diligence when choosing a broker to work with. Here is a good rule of thumb: "Do not judge a book by its cover." Do not evaluate a potential broker by his or her fancy web site or promises. They all claim to be the best. But you are in charge here, and you have to evaluate potential brokers and make a final decision. In the end, your career and your money are at stake.
Fortunately, there are certain rules and tips to consider when choosing your forex brokers.
First of all, we recommend you to check the reputation of your potential "middle man." In almost every country, there are official institutions that issue currency trading certificates and protect users from fraud and manipulation. In the United States, these institutions are the National Futures Association and the Commodity Futures Trading Commission. Please verify the reputation of any potential broker with one of these institutions; it is the least you can do to protect yourself from scammers and from unethical forex brokers who want just to take your money.
Your next consideration should be customer service. Although the majority of forex brokers say they provide 24-hour support, the reality may be that you will spend more on hold than communicating with your financial representative. To avoid the problem, try making a few test calls and make sure the forex brokers you are interested in can provide the service that would be the most fit for your business. You can use these test phone calls or live chats to ask some additional questions, especially about your potential broker's trade volume and previous results.
Finding a good forex broker can be stressful. But be patient and take some time for searching and testing different options. Do not rush, because this can lead to financial disaster. In the end, if you have the right service at your fingertips, you will be able to spend more time on creating your financial strategy, developing a detailed analysis, and doing what it takes to succeed in the forex market.