Before you start trading in the foreign exchange market, you will need to look for a good broker. Besides helping you with several resources, a good broker will be your only point of contact in the online trading world. As a matter of fact, you must know that your broker will not tell you what to buy or sell, instead it will simply perform in accordance to your decisions.

There are thousands of forex brokers today, online as well as offline. Like all other fiels, there are some good ones and there are a few scammers as well. Therefore, we have listed a few guidelines to help you choose the right broker.

To begin with, it would be suggestive to associate with an US based forex broker. You must check if the broker is registered with FCM (Futures Commission Merchant), is a NFA member and must be associated with CFTC (Commodity Futures Trading Commission). At the same time as the forex markets are pretty unregulated, it will give you a good idea to show if your broker is committed. Non-regulated firms must be avoided completely and you must always check for the financial state of the company. According to the NFA, forex brokers are required to have a clean record.

On the other hand, your forex broker must allow you to trade online, with all the necessary resources. For the most part, reputed forex brokers will provide you with a demo account. If you face difficulties operating the demo account, then you must never consider that broker. The terms and conditions differ from one broker to another and hence you must read as well as understand them properly. For an instance, the minimum lot size may vary along with the rollover charges. Forex is a 24-hour market and hence your broker must also provide services round the clock. The orders must be executed instantly and as a beginner, you must try and get some amount of leverage. Also, check for the kind of spreads your broker provides. You must always aim for low spreads.