Forex brokers Dubai - Evaluation

One of the most difficult tasks when it comes to getting started in Dubai Forex trading is choosing a Forex broker. There are numerous brokers out there that it can be confusing to find out which are the legitimate ones and those that are only here to rip people off. While in the process of choosing a Forex broker, it is important that you have the diligence to learn as much as possible to confirm that a broker is legitimate. The one you choose should be the most appropriate for your requirements depending on your trading knowledge and experience.

Below are some of the things you need to do when evaluating a Forex broker:

1.      Check If the Dubai-based Broker is Regulated

Regulation is the most important thing you need to look for when choosing a broker. A regulated broker is one that operates under the supervision of an authorized regulatory body. Basically, these authorities set rules and regulations for brokers to follow to ensure decent and ethical trading practices. Go for a broker that is located in a country where it can be regulated. For example, if you are looking at a UK-based Forex broker, you want to make sure that it is regulated by the Financial Services Authority of UK.

2.      Read Reviews Online

There are a number of Dubai discussion boards and websites around the Internet where traders recommend and give reviews of different Forex brokers. It is a good idea to look for a review site that is not affiliated with a certain broker as this site will most likely be biased.

3.      Check How Much Leverage It Offers

Depending on your trading style as well as the level of risks you want, the leverage is one of the things you need to know about for each broker. If you are someone who is just getting started, then it is highly advisable that you start with less average. As your experience and knowledge increases, you may want to consider working your way towards higher leverage. Also, new Forex traders are advised to start with “micro” lots so check with a broker if it offers this.

4.       Check whether it Offers Fixed or Variable Spreads

A fixed spread is one that will not change regardless of the market conditions while a variable spread is one that tends to fluctuate in range depending on the market conditions. Still, the better option between the two will depend on the style you employ in trading, your tolerance for risk and the frequency of highly volatile market conditions.

5.        Try Its Demo Account

What could be a better way to get a feel of a broker’s trading platform than by actually trying it out? Most Forex brokers offer demo accounts for traders to participate in the market and test their strategies without risking real money.

After following the above mentioned to do’s for a few brokers, you will probably have an idea of which one you are comfortable with. There are several other things that you may want to consider as well such as the deposit and withdrawal methods, slippage, execution time and value added services.  Remember that when choosing a Dubai-based trading platform, you need not to go with one that has extremely futuristic features but one that is just right for your needs.  

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