Here are few things to take note when it comes to your choice of broker:
Choosing a reputable and sizable forex brokerage is a safe bet since you reduce the possibility of your brokerage firm closing shop. When that happens, you will have a hard time to get back your deposits. With a large brokerage firm, we can expect that they have a better personal cabinet manager to deal with deposits and withdrawals etc. The scale of business will also influence the ability of brokerage firm to liaise with various liquidity providers, as a client, you may enjoy better spreads, more products to trade and better liquidity in the market.
You want your forex brokerage firm to be strictly regulated so they will not siphon your money. Strict regulators will require forex brokerage firms to segregate funds of company and the clients. In the event that forex brokerage firm faces liquidation, your funds will still be protected.
- Fees for deposit and withdrawal
Some forex brokerage firms charge 1% for deposit and withdrawal. There are forex brokerage firms which will absorb the costs for their clients. In fact, many brokers have been adopting the practice of absorbing the costs for deposits and withdrawals.
Spreads are your costs of doing business in the forex market. Of course, you want to minimize your costs. Take note of news event when you will see spreads widen substantially for some forex brokerage firms.
- Negative account protection
You absolutely do not want to lose more than your deposits.
- Trading executions (market maker, ECN, NDD)
For market making model, the brokerage firm will take on the opposite side of your trades. At times, the market maker may hedge their risks in the market. At times, we will hear comments such as stop hunting by the brokers, i will leave it up to you to decide on the hearsay.
As for NDD and ECN, brokerage firms do not take on the opposite side of your trades. In short, they will pass your trades to the market, hence there is no conflict of interest.
There are many platforms out there, some of those are proprietary platforms. In the market, one of the most commonly used platform is MT4.
Before you make a decision, check out reviews of the forex brokerage firm.
You may want to consider looking at "CASHBACK" webpage to trade with forex brokerage of your choice and get a rebate when you trade.