The forex market is one of the largest markets in the world. Many of the individual traders are US citizens and forex trading is very popular in states, considering that some other online investment forms are highly restricted. The US dollar is one of the strongest, most traded currency and most sought after and the by far the most traded currency in the world. In fact, the US dollar participates in over 85% of all forex trade volume. The forex trading symbol for the US dollar is USD That is the main reason why only pairs where the US dollar is paired with either of the other seven strongest currencies is considered a major pair. Minor currencies, that don’t belong in the group of the strongest currencies, are usually paired with the dollar. This article will shed more light in tips to finding out the best and most reliable US forex broker.
1. REGULATORY COMPLIANCE:
Forex trading is subject to very strict standards in the United States. The first and perhaps the most important aspect is the legal aspect. In the U.S., a reputable forex broker known to be the best will be a member of the National Futures Association (NFA) and will be registered with the U. S. Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant and Retail Foreign Exchange Dealer. The NFA is an industry-wide, self-regulatory organization for the futures industry in the United States. It set up guidelines, programs and services to protect the principle of the market, traders and investors, and to help members meet regulatory responsibilities. The CFTC is an independent government agency that regulates the commodity futures and options markets in the United States. Forex brokers, whom are referred to the best, make sure they adhere strictly to the regulatory compliance.
2. LEVERAGE and MARGIN:
Forex participants have access to a diversity of leverage amounts depending on the broker. Leverage is a loan extended to margin account holders by their brokers. Leverage favors’ a trader with winning positions since the potential for profits is greatly increased. Leverage can, however, quickly destroy a trader's account since the potential for losses is magnified as well. Best forex brokers make sure that leverage is used with caution.
3. EASE OF DEPOSITS AND WITHDRAWALS:
They also make withdrawals easy and hassle free. Each forex broker has specific account withdrawal and funding policies. Brokers may allow account holders to fund accounts online with a credit card, bank check or business or personal check.
4. TRADING TERRACE:
The trading terrace is the investor's portal to the markets. Brokers termed as the best always make sure that their platform and any software is easy to use, visually pleasing, has a variety of technical and/or fundamental analysis tools, and that trades can be entered and exited with ease. They also have a well-designed trading platform will have clear buy and sell options.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.