The Forex market is among the biggest in the world. By volume, value and number of transactions, it exceeds almost every market in existence by many times over. Every day, on an average, over $5.3 trillion worth of transactions keep the market alive and active. Many types of transactions are carried out in the Forex market and the biggest ones are spots, forwards, foreign exchange swaps, currency swaps, and options.
The Forex market is truly global as any currency can be exchanged here from the world over. The market also never really rests as it is a global market and there are active transactions going on in some part of the globe every day, all day. The only time the market rests is the weekends measured from Sydney to New York.
US Forex Brokers Reviewed
Forex trading is mostly done by large banks and mega corporations, which trade in large volumes. It is said that they are the only ones who are capable of making profits as the margins are small otherwise. Is it true that common investors rarely make any significant profits in Forex market? The answer is both yes and no. Only a few in the market make big money, some make modest profits and some lose. The Forex market similarly is one that has its ups and downs, but through diligence and careful study, it is possible to make profits in the market. The Forex practices in the US, are however quite safe as far as the regulations go. The NFA and CFTC have a set of regulations that govern all brokers inside the country, which strives to protect both the investors as well as the brokers. Apart from having the margin for leverage set at a rate of 50:1, the record keeping and reporting is quite rigorous.
Reaping returns in Forex
A lot of money is made and lost everyday because of mistimed trades. Trading has to be done quickly and if everything aligns up, it can be profitable. Among the most important factors is choosing a reliable broker who can guide you through the process of trading in a Forex market.
Choosing a Reliable Broker for Forex Trading
The concept of being spoiled for choice cannot be truer in any other type of market. There are thousands of brokers in the US Forex market. Since the advent of online trading in the Forex market, brokers have mushroomed up all over the country and it is true that any person with a computer and a reliable internet connection can participate in Forex trading.
Some things that can be taken into consideration while looking for a reliable broker in the US are the record of the company. Does the firm have a good track record? Is it rated well for its business practices? Most importantly, is the firm registered as part of the National Futures Association?
Trading and methods
The next point of consideration will be the way in which the brokers do the business, the kind of offers they have, and the service. Apart from that, look for the following to find a reliable broker :
- Spread margins: rule of thumb - the tighter the spread, the more money saved.
- Execution: The speed, or time between an order and the execution can be the difference between profits and loss. Conducting a few test on demo systems to gauge the efficiency of the trader is a good idea.
- Platform: The trading platform needs to be concise in terms of data as well as ease of use and reliability.
- Accounts: Some brokers allow simple wire or Paypal transactions, but others charge heavily for even general withdrawals.
Red flags - Scam Brokers Do Exist
There are more ways to loose money than to make money in Forex, so being cautious pays. When looking for a broker, look out for:
- Unusual rules
- Heavy claims in the advertising
- Unsteady platforms that re-quote
- Front-running brokers
Most importantly, always remember that if the offer is to good to be true, it usually is. It may take a few jerky attempts before you can begin to expect a steady inflow. However, once you find a reliable broker, trading should get simpler for you.