Going with a broker is a must in order to trade on the Forex market. But at some point, an investor will have to choose between a standard broker from a financial institution, corporation or other known trader or an online broker service. It may seem as though going with the “name brand” financial institution is the best idea, especially in a market that is largely unregulated. But which is really better – online or “brick and mortar” brokers?
Forex is an international market. By its very nature, investors are dealing with a global market. Shouldn’t your Forex broker be experienced in the nuances of dealing with international financial issues as well? If you are looking at a broker who only understands a handful of currencies or has one office in Milwaukee, run in the opposite direction. This is where online brokers can make all the difference. With a keen understanding of the popular trading platforms, such as Metatrader, an online broker is available to you in the same ways as the Forex market is – 24 hours a day, 7 days a week.
An online broker is also better positioned to handle the needs of today’s investor profile. Today’s investor is hardly the handful of monied aristrocracy of yesteryear. From working mothers to college students, the normal investor needs to invest at times other than 9 – 5. The average investor is also looking to have as much control over the process as possible, has a range of data available to him or her at any given time, and expects support during the times when he or she chooses to invest – not when a typical brick and mortar institution decides to hold working hours. Online brokers also offer the opportunity to work with international colleagues – and really, if the market in which you are invested is an international one, shouldn’t that be required of a broker?
For some needs, a traditional broker is the way to go. With Forex trading, however, finding a good online broker is the best way to maximize your investment.