The first reason is simply because of the fact that there are hundreds, if not thousands of different brokers to choose from. As well as lots of mainstream brokers located in countries in highly regulated countries such as the UK and US, you will also find lesser known brokers based in a variety of different countries including offshore locations where there is a lot less regulation.
My advice here would always be to narrow down your search to the bigger more established companies that are fully regulated by the relevant authority so that you know that your money is secure.
Another reason why it's so difficult to choose a forex broker is that even the large mainstream brokers are different from each other in their own way. For instance some brokers may be ideal for newbies because they offer free practice accounts, micro accounts and a range of tutorials, whilst others may require high minimum deposits and cater towards the well capitalized professional trader.
Similarly each broker will offer a range of different services that may or may not be of interest to you. For instance some brokers will offer highly professional charting software whilst others may only offer a basic in-house package which isn't really sufficient. So you really do have to do your research and identify which brokers offer the kind of services that will be most useful to you.
Finally after you've drawn up a list of potential brokers you may want to read some testimonials from other traders. The internet is full of user comments so you will have no problem finding these testimonials. However the problem you will face is that pretty much every single broker, even the biggest ones, will have some negative comments from disgruntled customers.
As a result you will probably be put off joining every single broker on your shortlist, however it should be pointed out that many of these negative reviews are from traders who have suffered losses. So unless there are numerous comments that all complain about the same issues, you should try and ignore these isolated complaints and focus on some of the positive reviews instead.
It's very difficult to choose a forex broker but as long as you go with a broker that's fully regulated, has lots of positive reviews and offers the services you require, then you should be more than happy with your final choice of broker.
Click here for a full forex broker list and to read a complete review of Zecco Forex.
Tags: finance, forex, currency trading, forex brokers, forex trading brokers, choosing a forex broker, currency brokers