The global foreign exchange market is the most transparent and running market in the world, although it is transparent, trading with the right forex broker is of utmost importance as it determines the success in the international currency market. Knowing your investment style can also help determine the one that can serve you best.
The more traders a forex broker has, the more reliable he/she is. Those with high client base must have been vigorous in the market for a long period of time, otherwise they wouldn’t have been able to reach that size. This can further prove that their trading software is stable and advanced, that is, a lot of time have been spent improving the software. Here are some pointers to determine those who are successful in the trade.
1. Google search- GoogleAdWords Keywords tool records how often they were searched on google. If they are searched often, then, there is high tendency that there is efficiency. Although there are some limitations, For example the website can be down, it can also be searched if it is running a large scale advertising campaign.
2. Google results- Google results measures the brand name which can be found in the google search engine. We often assume that if there are lots of websites writing about a particular broker, then he/she must be successful in the field. Similarly, the limitations of google search, also applies here.
3. Alexa rank- Alexa is a web service that is attached through a tool bar to browse. It measures websites that are visited often. Although the tool is not very exact, it pinpoints if the success rate. One of its disadvantages is that it usually measures one domain. For example if a broker has a specific domain extension, for France and another domain extension for New Zealand, One can be visited less often and they might seem small than when the they would use its international domain for visitors from other countries.
4. Trading tools and platforms- The platform and trading tools must be available and compatible with the web browser, computer operating system and mobile smart phone you are planning to use.
5. Market capitalization- Companies that can be ranked by market capitalization are those listed in the stock exchange. It represents the value investors give to a specific company. A small but profitable company can have a higher market value than a large company unable to generate profit.
6. Assets volume of daily transactions (AVDT) -The daily transaction can vary, but the more active, the less volatile the value of transaction will be. In order to get the real value, calculate the average volume for a larger period of time, as daily and seasonal fluctuations will be less relevant to be termed successful, it must have AVDT of at least one billion dollars.
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.