Despite what the advertisements claim, it is always better to learn the nuances of Forex trading under the tutelage of an experienced Forex broker than to start trading on one’s own. Forex trading compulsorily needs a Forex broker and because of the growing interest of the investors and an ever expanding currency market, there is a plethora of Forex brokers in the market. This is confusing for the first time investors as they can make the wrong move and choose a Forex broker who is not experienced or allows them to make moves that cause them great financial losses.
The role of a Forex broker in currency trading is to support his client in such a way so as to increase his chances of winning and to minimize his losses. Also, do not think of a cheap broker even if he is inexperienced at the start. Many people do this when they are starting in the forex markets and burn their fingers right at the start. You may think of upgrading your Forex broker later but you lose so much early on that you hardly think of re-entering the markets again.
Even before saying yes to the offer of a demo account, you must ask your forex broker a few things. This is because you spend time and effort to master the system only to learn later that your forex broker is expensive and you cannot afford him.
Do Not Forget To Ask the Minimum Investment Requirement
This is important as there are different requirements in the cases of different forex brokers. While there are some who ask you to just have $100 as minimum amount in your Forex account, there are others who would not allow you to start investing unless you have at least $1000 in your account. It is true that you make more profits with a larger investment, but there are also times when you need to stay within your budget to avoid big losses.
Ask if the Forex broker supports currency pairs you want to trade in. This is necessary to avoid disappointment later when you are not allowed to trade in your preferred currency pair.