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  • Request information about opening an account. You can open a personal account or you can choose a managed account. With a personal account, you can execute...
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  • Check on transaction costs for each trade. You should also check to see how much your bank will charge to wire money into your forex account.
    Focus...
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  • Visit the broker's website. The website should look professional, and links should be active. If the website says something like "Coming Soon!"...
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  • Read reviews but be careful. Sometimes, unscrupulous brokers will go into review sites and write reviews to boost their reputations. Reviews can give...
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  • See how many products the broker offers. If the broker also trades securities and commodities, for instance, then you know that the broker has a bigger...
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  • United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
    United Kingdom: Financial Services Authority
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  • Check to see that the brokerage is regulated by a major oversight body. If your broker voluntarily submits to government oversight, then you can feel...
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  • Look for someone who has been in the industry for 10 years or more. Experience indicates that the company knows what it's doing and knows how to take...
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  • A pip measures the change in value between 2 currencies. Usually, 1 pip equals 0.0001 of a change in value. For example, if your EUR/USD trade moves from...
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  • Read economic reports. Reports on a country's GDP, for instance, or reports about other economic factors like employment and inflation, will have an effect...
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  • Consider politics. If a country is having an election, then the country's currency will appreciate if the winner of the election has a fiscally responsible...
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  • Look at a country's trading position. If a country has many goods that are in demand, then the country will likely export many goods to make money. This...
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  • Make predictions about the economy. If you believe that the U.S. economy will continue to weaken, which is bad for the U.S. dollar, then you probably...
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  • The ask price, or the offer price, is the price at which your broker will sell base currency in exchange for quote currency. The ask price is the best...
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  • A short position means that you want to buy quote currency and sell base currency. In other words, you would spend sell British pounds and purchase U.S....
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