When you trade forex you need to find the best Australian forex brokers to use. There are certain aspects related to the Australian forex brokers that you have to consider when you look at them. There are many free online resources that you can use to learn about the forex market. It is important that you know what to look for in the broker. You also have to find out how to test the brokers to find the best one.
The Australian Forex Brokers
Your first step is to find a suitable brokerage to trade with. Some forex brokers offer more than others. They each have their distinct pros and cons and to aid you in doing a due diligence test; there are a few factors you should keep in mind:
- Find out how big the brokerage is. Question the number of employees they employ and their level of expertise. Find out the amount of excess capital that it carries.
- You need to determine where the brokerage has been incorporated. Is it offshore or in established countries such as the UK or US?
- Is the brokerage regulated? If they are, you need to know where and how many countries.
- Question their level of support. Will they offer you a 24-hour live telephone support system?
To protect your money, it is best to look for a large brokerage that is regulated in at least one or two of the major trading currencies. This will ensure that you are covered if you need to appeal in cases of bankruptcy. The larger forex brokers will have more resources to enable them to offer you more secure services as regards their services. The more employees they have in their brokerage, the better for you. This will give you the peace of mind that you will not get a busy signal if you wish to place a trade telephonically. The bottom line here is that you want to find a broker who is legitimate and not a fly by night.
Testing Your Broker
As soon as you have found a suitable broker, you should immediately test their system by opening a demo account. Demo accounts are unique to forex trading and it is an excellent way to get your feet wet and to get a taste for the trade. A demo account will allow you to learn how to effectively use the broker’s trading platform. This will also allow you to find a platform that best suits your style and requirements. The demo accounts that are normally offered should provide you with the same functionality as a live account. The only difference between the two accounts would be that you are trading with virtual currency in your demo account. Demo accounts are excellent in that it allows you to practice different strategies before you start using real money.
In the US, it is a requirement for registered forex brokers to meet very strict standards. They need to submit regular financial reports to the Commodity Futures Trading Commission and you can visit their website to access these statements.