These questions are based on the above information and relate to basic information that your Forex Broker should answer without hesitation. Or contact FXCM and put them to the test; their friendly staff is always happy to answer these and any other questions you may have.
- How long have you been a Forex Broker?
- In what financial condition is your company? Will you show me your balance sheet?
- Do you have good relationships with reputable banks?
- Who is quoting the rates, my broker, a bank, or multiple banks?
- Are the spreads fixed of variable?
- How tight are the spreads?
- Do you offer Fractional Pip Pricing?
- Are there any trading restrictions?
- Can I place orders inside the Spread?
- Can I earn interest on positive rolls?
- Can I earn positive rolls at all margin levels?
- Are rollover rates displayed prominently? Where?
- Does the trading platform allow me to hedge?
- Can I lose more money then I put into my account?
- What is the quality and availability of customer service?
Be aware that trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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