Tips When Choosing a Forex Broker: Part Three

ByRichard Broomstick

Expert Author Richard Broomstick

Retail Forex trading occupies the largest portion of the market today with millions of individual investors from all over the globe trading currencies online. For any newcomer in the industry the most important step is to find a company that can provide fast and easy access to the market. It must also meet all other custom requirements that each individual trader may have and provide a platform with large capabilities and technical tools. Unfortunately in the last few years we have witnessed the significant rise of Forex scams and fraud cases, making prior research and comparison of different offers one of the most important factors for any new trader to consider before joining the market. We have previously stated the importance of Forex regulation as the means in securing your investment and leverage for accurate risk management. In addition make sure to read and understand the different types of Forex accounts, Market markets and STP/ECN (straight through processing/electronic communications network), and find a firm that offers a variety of withdrawal and deposits options. In this article we are going to continue our discussion around the vital criteria when choosing a Forex broker by analysing the value of demo accounts and privacy.

Demo accounts are extremely important due to the fact that any trader and especially newcomers can learn to trade through a platform and test different strategies. The demo environment has the same functionality as the real account, but gives you the ability to trade using virtual money. Demo accounts are offered by most reputable firms and act as a great source of attracting new clients. Investors should be aware that it is essential to test different demo accounts from a variety of firms before investing any real money. Creating a demo account can be done in a few minutes, requiring no documentation and minimal personal information. Make sure to check your email as most brokers use it to verify new accounts.

Privacy has been an issue of discussion over the last few years in many niches such as social networks and online trading. The importance of privacy is also visible in Forex trading since every trader must provide verification documents such as an ID or utility bill and a variety of personal and financial information. Knowing the different privacy options and the way your broker handles personal information is essential in having a successful and safe trading experience online.

Richard is a financial writer. Check out his Pepperstone review and more at