This article looks at the services Australian forex brokers offer and the questions you must ask before choosing one.
When entering the foreign exchange market, you must have a desire to be effective and succeed in your trading. However, enthusiasm is not sufficient as you must be willing to put in the hard work. It is highly recommended that new traders undergo forex training before entering the market. This will indicate the amount of work forex trading involves, and the dedication it requires. Once you have the basics covered, you can enter the market with confidence.
Australian forex brokers and forex trading
In order to trade on the foreign exchange market you will require a forex broker. In order to find the best forex broker for your needs, you will have to sift through the numerous options available on the internet. Some forex brokers will offer a more sophisticated and rounded package than others, and you must determine which one is most suited to your trading style. Here are some factors you should consider before beginning your search for a brokerage:
- Is the forex brokerage regulated? Although the forex market itself is deregulated, there are countries that require forex brokers to register with a governing body. If your chosen broker is located in one of these countries you must discover if they are regulated. This information can be found online.
- How large is the brokerage? There are numerous brokerages available online ranging in sizes from very small to very large. It is important you discover the size of the brokerage to determine what sort of services they are able to offer. Many traders prefer large brokers due to the reputation and sophisticated services; however, small traders have proven just as successful with more intimate client/broker relationships.
- What level of customer support is available? The forex trading market has a 24 hour operating timeframe from Monday to Friday. It is important you find a forex brokerage that can offer customer support during these hours. It is pointless registering with a broker only to discover they are unavailable when you require emergency trading assistance. Furthermore, you must identify the communication method for support. Ideally, the brokerage should utilise telephone and live chat options.
- Is the forex brokerage incorporated? It is important to determine whether or not the forex brokerage is incorporated. If it is, where was it incorporated and is it incorporated in a major trading country or offshore?
Australian forex brokers and the demo account
When you have identified and chosen a forex broker, it is advised that you open a demo trading account. This provides you with the opportunity to test the trading platform, the customer services and all additional forex trading services. These demo accounts are unique to Australian forex brokers and the forex market. They are always an ideal way to practice trading skills, as well as developing an effective forex trading strategy.
The demo account provides a trader with the same facilities as a forex live trading account, but in a secure trading environment. This means that the trader uses virtual trading capital and not personal capital, which allows for experimentation with trades. It gives the trader the option to practice trading without the worry of detrimental losses.