Choosing a Forex Broker
The forex trading business has changed tremendously since I made my first forex trade way back in the 1980’s. In those days the costs of data feeds and market news feeds were so expensive that except for big players trading from home or from a small business was prohibitive.
The cost of Reuters, Telerate, and other services could easily be several thousand dollars a month. There was also the problem of finding legitimate banks or counter parties for your trades that would accept smaller accounts. And by smaller I mean anything less then seven figures.
Even then many banks would accept a forex trading account only on an accommodation basis. Which meant that you had to have a sizable amount of other business and deposits at the bank in order to be accepted for forex trading.
There were forex dealers, mostly out of Asia, who catered to the smaller client but most of these were bucket shop operations and best to be avoided.
As you can tell the good old days were not so good for smaller forex traders. How things have changed in the past 25 years.
Now you can run a search online for “forex trading” or “forex trading system” or just “forex” and find a large number of firms eager to accept your account and forex trading business, even if it is small potatoes.
Your choice of a good forex broker or dealer is important to you. Take your time to research each firm of interest. The following are a few things to consider:
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