Criteria for selecting a Forex broker
There are several criteria that are worth considering before you fill in the registration form with a broker. Competition among Forex brokers is huge, which guarantees a neat chance for a good choice. It pays to take the time to choose a broker that will best fit your needs and you will be able to use their services for your benefit.
Regulation and References
The first thing you may want to take a look at when selecting a Forex broker is the issue of security. You have to find out if the selected broker is registered with any regulatory authority. In the United States, a broker should be registered as Futures Commission Merchant (FCM) with the Commodity Future Trading Commission (CFTC) and should be a member of the National Futures Association (NFA). The two authorities – the CFTC and the NFA are on the forex market in order to protect the public against fraud, manipulation and illegal trading practices.
On the website of the National Futures Association’s you can check the registration of a particular company or individual with the CFTC and the NFA. Focus on that the company you choose has a clean regulatory records and solid financial background. And watch out! It is not recommend using services of unregulated companies or individuals in any case.
Common foreign exchange controls include:
Banning the use of foreign currency within the country
Banning locals from possessing foreign currency
Restricting currency exchange to government-approved exchangers
Fixed exchange rates
Restrictions on the amount of currency that may be imported or exported