Foreign exchange markets have existed throughout the world since a long time. Forex markets were thriving even when there were no stock or commodities markets. One can guess why. Since goods and items of all kinds were exchanged between countries through barter systems, gold, silver and other metals served as currencies of exchange. The traders and merchants were the transacting partners. Although forex trade and forex markets have undergone many evolutionary changes, the essence remains the same. Till the middle of the 20th century, commerce in forex used to be the exclusive preserve of banks and resourceful investors or speculators. Gradually, brokerage firms and forex trading brokers came on the scene.
Presently, the foreign exchange trade has a turnover of more than $1.2 trillion and there are too many stakeholders. Moreover, the giant strides made in the field of information technology have made forex exchange trade accessible to one and all. Even housewives are making money through online forex trading. Nowadays, a major part of the trade is carried on or conducted online. So if you want to become a forex trader and get assured returns on your investments even though your spread is very low and wears thin, you need to choose a reliable broker or a brokerage firm. There are so many brokers and brokerage firms complete with their online sites claiming to offer the best of services, that you are bound to lose your way.
We at UFX Tools offer an umbrella of services in forex trade. We also offer coaching and exemplary guidance to those individuals who are willing to make a career out of forex trade. We provide all traders, including traders on our platform with comprehensive forex trading information to keep them updated on this front. Our review of brokers and brokerage firms according to certain parameters will definitely help you to select a reliable broker. You have to do a lot of research and hard work as there is no magical way. A ready reckoner of the attributes that most seasoned and new traders look for in a broker is being listed.
- The broker has to be registered: It goes without saying that the broker or brokerage firm has to be registered with the relevant authorities so that your deposits are safe and you can do business with peace of mind. Your broker should also be tech savvy. All individual and institutional brokers have to register under NFA or the CFTC.
- Genuine brokers pay low but fixed commissions: You are in safe hands if your broker is offering spreads in the range of 1 to 3-pips. You can also count on your broker with providing you valuable forex trading tips.
- Low account opening deposit: You will naturally want your opening deposit to be low but it should be substantial enough to give you a good leverage on your spread. A good broker will always offer sound forex trading strategies.
There are many other characteristics that are the hallmarks of an established broker like trading platform interface, spectrum of currency pairs offered and so on. That a reputed broker must have a portal for forex trading online goes without saying.