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“If there is smoke, there is a fire”. Before choosing a broker, do your own research regarding their reputation. Even if a broker is regulated, it does not mean that they are good for you. Search for news related to the broker. Check if there are any pending legal cases against the broker listed in any news site or if there are officially complaints initiated by their customers. Just search for the broker and add after the broker’s name “legal issues” and search for news. If you cannot find anything then you can go ahead and consider opening an account. Reviews websites and forums are another great source but have in mind that many of the comments and reviews are fake since brokers in their efforts to increase their reputation filled the internet with these fake comments and reviews.

Forex brokers are for-profit organizations. Some are big enough to sponsor multi million-dollar events such as Formula 1. The main income of the broker is through spreads. A Spread is the difference between the bid and the ask price. A currency pair, for example, EURUSD might have an exchange rate of 1.1110 but when you want to place a buy position you buy at 1.1113 and a sell position at 1.1108. This difference between the bid and ask price is called the spread. Depending on your broker, the spreads may vary. Some brokers are really greedy, and this difference is pretty high, so before you choose a broker make sure you are fully aware of the spreads the broker charges.