The choice is crucial, and yet many people don’t get it right first time. Having the right broker can actually make a change to your profit or loss. So what should you look for in a foreign exchange broker?

1. Investment Level

Look for a brokerage service that’s directed at clients at your investment level or a little higher. They vary widely from a $25 minimum right up to $10,000 or more. Don’t go for the forex broker with the lowest minimum investment unless you really are going to invest the minimum. Each company’s spread and services will be different, and you need a service that is a good match for you.

2. Regulation

Check their membership of regulatory bodies. This could give you some protection in the case of the company’s failure. Bear in mind the regulators will depend upon the country in which the company is registered. The main US regulators are the Commodity Futures Trading Commission ( CFTC ) and the national Futures organisation ( NFA ). Foreign brokers won’t be registered with them but will have other options. Check precisely what those are and what protection they give you.

3. Platform

Take a glance at the software platform. You can generally access this in a demo account. Unless you intend to subscribe to a separate technical research service, you’ll need something that offers good charts. Some currency exchange brokers also offer financial stories alerts which can be handy. Do not forget to check that the order process is clear and simple, to avoid mistakes.