Before you decide on a broker, ask the following questions. If they can answer without hesitation, you’re headed in the right direction.
1. How long have you been a broker?
2. Can you tell me about your company’s financial condition? (ask to see their balance sheet)
3. How are your relationships with major banking institutions?
4. Where do you get your rate quotes from? (broker, bank or banks)
5. Are your spreads variable or fixed?
6. How tight are your spreads?
7. Does your brokerage offer fractional pip pricing?
8. What, if any, are your firm’s trading restrictions?
9. Do you permit scalping?
10. Will I earn interest on positive rolls?
11. Is there an opportunity to earn positive rolls at all margin levels?
12. Where are your rollover rates displayed?
13. Does your trading platforms allow hedging?
14. Do you have any policy in place to prevent me from losing more money than I put into my account?
15. Do you offer around the clock customer service availability?