What Distinguishes The Best Forex Broker

Posted by adairsawyer on November 9th, 2011

The question of what characteristics define the best forex broker is a difficult one to answer, given the sheer number of online forex brokers that have begun operating in recent years. A much easier question to answer, however, and perhaps also a more practical one, is how to determine what characteristics define the worst forex brokers, so that you will immediately be able to identify these brokers and steer well clear of them.

The best forex broker will undoubtedly have a stellar reputation. The worst forex brokers, on the other hand, will have little reputation to speak of, or worse, they will have horrid reputations. Having little to no reputation is only slightly better than having a bad reputation. This is because an online forex broker with no reputation is most likely a new broker, and this means that few traders would have made use of their services. You should never be among the first traders to test the services of a broker. If you are, you never know whether or not the systems that they have in place to facilitate your trades and to provide you with information are effective and work properly. And having a bad reputation should speak for itself.

The best forex broker will have a website that is easy to navigate and intuitive yet useful and fully-featured. The worst forex brokers tend to have websites that are messy and cluttered or do not have clear links to essential tools. Financial information, for example, should be easy to access and displayed in a manner that is easy to read and understand. If you do not have easy access to financial information, your trading will probably suffer for it as you will not be able to make properly informed choices as to which currencies to purchase and which to sell.

The best forex broker will have impeccable customer service. The worst forex brokers, however, will have incompetent or non-existent customer service. Sometimes, you will find yourself in need of the human touch, and you will want to speak with someone who can help you. Some truly terrible online forex brokers, however, do not maintain customer service help lines nor do they answer emails in anything resembling a timely manner. You are left floundering about trying to find help that simply is not forthcoming. This is one of the worst situations that a forex trader could possibly find himself in.

Finally, and perhaps most importantly, the best forex broker will maintain low prices for trades. The worst forex brokers will attempt to charge you as much as possible, so that they maximize their profits at the expense of yours. The price of a trade is determined by the spread offered by the online forex broker, and the lower the spread, the better the price. Some forex brokers take advantage of traders by offering extremely large spreads, and you should avoid these brokers like the plague, as they will most definitely not have your best interests at heart.

Identifying the absolute best forex broker may be a difficult task, but finding a good online forex broker is not, especially with help from Forex Broker Guide.