One of the first things a new investor ought to do when selecting an online broker is to check the broker’s ratings and popular endorsements. This goes a long way toward establishing how that firm conducts business and treats the customer. But there is more to it than that, and new investors should be aware of to look for next. While a popular firm based in the islands, Loyal Forex offers several examples of situations that all traders should be aware of and take into account when selecting an online broker to trade Forex. Here are a few examples to consider.
Only based in one area. Forex is an international market dealing with multiple currencies and possible pairings. Offices in only one location means a variety of things for an online trader. For one thing, unless the office can staff personnel to answer questions and execute trades 24 hours a day, 7 days a week, they are not keeping up with the way the Forex market actually works. Second, with multiple pairings, one would expect a strong online broker to have offices in multiple locations internationally, rather than one office in one part of the world. This makes experts available internationally in a variety of languages, not a specialized niche market for certain investors.
Only dealing with one primary currency. Most investors are only savvy to one, possibly two, currencies are usually the primary Forex trading currencies, not the additional pairing possibilities. While it can be good to start with a primary currency that you are familiar with – and this strategy is actually recommended – to really make money on the Forex market, an investor needs the option to expand into other currencies and pairings, and the expertise that comes with understanding multiple currencies.
The bottom line is that customer service is critical – but far from the only factor you need to consider when making a choice.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.
