A forex brokerage firm is an organization which is responsible for holding as well as handling the individual portfolios of numerous forex traders from all over the world. The forex market being the largest trading market in the world consisting of millions of traders from all possible countries, it is but natural for any single trader to be intimidated by its sheer size and participation and hence get disoriented in the process. It is with the intention of avoiding such a situation that a concept of a forex brokerage firm evolved so that instead of being burdened with the responsibility of selecting the appropriate trading transactions one can avail the services of a broker who would conduct trade on one’s behalf in return for a small percentage of profits.
It is has been a trend in the world that a successful commercial enterprise is often followed by the establishment of a number of supportive commercial activities which are related to the main activity and survive on its success. Similarly, forex brokerage firms can also be described as being offshoots of the forex trading market and as the market continues to grow and expand more and more brokerage firms are being established to cater to the ever-growing strength of the traders. This makes it essential for the aspiring trader to be cautious while selecting a forex brokerage firm for effective handling of his personal portfolio.
There are a number of guidelines which should be followed by the forex trader while selecting a forex brokerage firm, the foremost among them being the certification of the firm in terms of the regulatory agencies with which it is registered as well as its past history since its date of establishment. These facts play an important role in gauging the reliability of the firm because the success of the trading calls depends upon the reputation of the firm in the market. Another important factor which influences the choice of the forex brokerage firm is the trading platform which is offered and if one is comfortable operating in it.
A good forex brokerage firm is the one which offers good quality round-the-clock customer service, features user friendly brokerage policies, is open to the option of operating mini as well as micro accounts and readily provides a number of trading tools and tips to the clients.