When engaging in forex day trading, it is essential for investors to employ the services of a forex broker. A good forex broker will not only implement your trades for you, he will also give you advice and even technical analysis to help you make the best trading decisions. Previously, a foreign exchange broker was usually a bank, since these were the institutions that mainly had access to the forex markets. But with the rise of the Internet, an investor can select a broker from anywhere in the world.

So how should you pick a forex broker? There are many factors to consider, but one important consideration is, what country is the broker you are interested in based? Since many brokers are multinational with offices in many countries, what country is the broker regulated under? Can he accept clients from your country?

Another consideration is the capital available to you for forex day trading. What is the minimum amount the broker will allow you to open an account? Some brokers will allow an account as low as one dollar. On the other hand, one prominent brokerage requires a minimum $25,000 to open a trading account. Also, how much does the brokerage charge in transaction fees? Some brokers only allow electronic wire transfers with high service fees, while others will allow free withdrawals using checks, although it would take a few days longer to get your money.

For more serious traders, one consideration is what currency pairs the broker deals in. Some brokers only trade in the major currencies, while others allow trading in a whole range of global currencies.

You should make a list of the requirements that you want your broker to have. You can then narrow this down and try forex day trading using demo accounts on their sites. You can then start small accounts with the brokers that pass your tests.

Watch out for problems such as frequent requotes (when the price changes between the time you placed your trade and when the broker tries to execute it) and large slippage (when you place an order at a certain price and your broker fills it with a worse price).

The bottom line is, traders should select a forex broker they feel they can trust. If the broker does not pass this simple test, then you should close your account with them and find another broker.