Mortgage rates and fees vary from lender to lender, and it's not always easy to compare all the details to find the best deal. Mortgage brokers help consumers sort through all those details and find the best mortgage solution possible, often through resources and connections that an ordinary consumer does not have access to. Using a broker can save both time and money. The broker is very familiar with the industry, and can be a valuable asset to a home buyer looking for a good deal on a mortgage. In addition to having substantial connections, the broker will have good insight into the process and how best to qualify. The broker will often have close connections with lenders, who view a good broker as a valuable customer and will sometimes make special rates or discounts available to brokers that are not available to the general public because of this leverage.
Because mortgage brokers make the process simpler for their customers, many loans in Australia are initiated by brokers. There are many reputable brokers in every state. Choose one with a good reputation and that is in good standing with the Mortgage Industry Association of Australia, a self-regulating body that imposes a set of ethical best practices on all of its members.
Look for an independent and unbiased broker. Of course, one expects a broker to receive a commission for their services, but some brokers attempt to sell mortgages with high fees that are not in the consumer's best interest, in order to receive higher commissions. The Australian Securities and Investments Commission, has cracked down on brokers that advertise that they are impartial when they are not. The ASIC recommends that if a consumer plans to use the services of a broker, to first look around to get an idea of existing rates, to be informed enough to know if they are receiving a good deal.
In the past, there has been some reluctance to use mortgage broking services because of the lack of regulation. Financial services of all types tend to be heavily regulated, and for good reason. Consumers must be protected against unscrupulous and predatory operators. And make no mistake; there are predatory mortgage brokers, just as there are predatory members of every segment of the financial community. Nonetheless, most are honest and provide a useful service. And more recently, there has been significant attention on the mortgage broking industry, and Australia is in the midst of a regulatory overhaul designed to keep mortgage brokers on an even keel.
It`s not always easy to know what to look for in a forex broker, especially in any market, much less a market as complex as currency. But, if you want to trade in the market you need a good firm to work with. While it might be tempting to simply ask the brokers what they can do for you, you can`t always depend on them to give you a straight answer. So instead, I`ve put together a few things to consider when choosing your forex broker. You will want a forex broker that has low spreads. The spread, which is calculated in pips, is the difference between the price at which a currency can be bought and the price at which it can be sold at any specific point in time. Since forex brokers don`t charge a commission, this difference is how they make money. Low spreads will save you money.
Along with this, you should be looking for a forex broker attached to a reputable institution. Unlike equity brokers, they are usually attached to large banks or lending institutions. The firm should also be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC).
Once you`ve narrowed your choices down to brokers that won`t cost you too much, and that are reputable, consider the trading tools that they are offering you. Forex brokers have many different trading platforms for their clients, just like brokers in other markets. These often show real time charts, technical analysis tools, real time news and data, and may even offer support for the various trading systems.
Before you commit to any one company, request free trials of their tools. Brokers generally provide technical as well as fundamental commentaries, economic calendars, and other research to help you make good trades. Shop around until you find a forex broker who will give you everything that you need to succeed.
The next item that you will need to evaluate carefully is the number of leverage options your potential partner has. Leverage is a necessity in forex trading because the price deviations in the currencies are set at fractions of a cent. Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your forex broker will lend you $100 for every $1 of actual capital you have. Many brokerage firms will offer you as much as 250:1. If you have low levels of capital you will need a brokerage with high levels of leverage to make reasonable profits.
If capital is not a problem, any forex broker that has a wide variety of leverage options would be a good choice for you. A variety of options will let you vary the amount of risk you choose to take. For example, less leverage (and therefore less risk) may be preferable if you are dealing with highly volatile (exotic) currency pairs.
Along with different levels of leverage, look for brokers that offer different types of accounts. Many brokers will offer you two or more types. The smallest account is known as a mini account and it requires you to trade with a minimum of around $300. The mini account also generally offers a high amount of leverage.
The standard account allows you to trade at a variety of different leverages, but it requires minimum initial capital of $2,000. And finally, there are premium accounts, which often require significant amounts of capital. They also generally have different levels of leverage available to the traders who use them, and often offer additional tools and services. You will need to make sure that the partner you choose has the right leverage, tools, and services for the amount of capital that you are able to work with.
A brokerage firm that meets all of these needs should be a good forex broker for you, but you still need to be certain that they are honest. Dishonest brokers can be prone to prematurely buying or selling near preset points (commonly referred to as sniping and hunting) or may indulge in other habits that will cost you money.
Obviously, no brokerage firm admits to doing things like these, but there are ways to know if they have. The best ways to find out more about your potential forex broker is to talk to fellow traders. There is no list or organization that reports dishonest activity, but a visit to online discussion forums, or a simple conversation will often reveal who is an honest forex broker.
You should also watch to see if a brokerage firm has strict margin rules. Since you are trading with borrowed money, your forex broker has a say in how much risk you are able to take. You agree to this when you sign a margin agreement for your account. This means your firm can buy or sell at his discretion, to cover the brokerage firm's interests, which could have repercussions for you.
Say you have a margin account, and your position takes a headlong nosedive before it begins to rebound to all time highs. Even if you have enough cash to cover it, some brokers will liquidate your position on a margin call at that low point. This action on their part can cost you dearly. You can only find out whether the firm is prone to this kind of activity by talking to other traders. Being informed on all aspects of a forex broker before you make the decision to trade with them will allow you to start trading the forex market with confidence.
Foreign exchange refers to exchanging of money in one currency for another which is traded on foreign exchange market or forex. Having an average daily trade of US$ 2 trillion and above, forex is the largest trading market in the world. Everyday new investors are jumping in forex to earning substantial profits. It’s good till they garner high return on investment but what if they tumbled down in the very first effort? Well, it may happen; especially when one is not at all exposed to the odds and calculated risks of foreign exchange. Therefore, it is suggested to move with a broker of forex, who knows foreign exchange more than him. Now how to hire an honest broker of forex? You may get the answer below:
Before hiring a forex broker make sure you know his job well i.e., for what he is assigned and how much he can do for you. Your expectation should be in tune with the experience of your broker. You may find a broker of the forex market, who is chic and cool with a long list of satisfied customers. But it’s not what you want from him. Before hiring a broker of forex, you should check out the spread of the forex broker. Go through his terms and agreements. Have an insight into the stipulations of service.
Embracing a broker who promises no risk may lead you to loss. You should not go after words of such brokers as forex involves certain amount of risks because of the nature of the market. Add to this, while selecting a broker of forex or foreign exchange market, see whether the broker has mini account or not. Mini account is designed for newcomers in the online currency trading and those who have limited investment capital.
Before selecting a broker of forex market, check out the leverage option. Leverage can be expressed as a ratio that held between total capital which is available to be traded and your actual capital. Also try to find out a broker of forex market, who has expertise in offering best resources and information about foreign exchange. A good broker of foreign exchange Your broker should also offer you 24 hour support. He should know the demand of foreign exchange and need of urgent trade agreements of forex. Check out all possible support systems offered by the broker of the forex market.
While finding out a broker of foreign exchange market, you should also ask around and read the forex forums to know more about a trusted broker of forex. Finding a good broker of forex is never a tedious task provided you are ready to search around with sound information about your target.
Many owner operators think Brokers are all bad because some brokers cannot be honest with the fuel sure charges now days. There is a misconception that all brokers are stealing the fuel sure charges from owner operators and that they are getting ripped off every which way but loose.
This is not the case. I used to own a dispatch service and had worked at a trucking company prior to my dispatch service. I have dealt with a lot of brokers in my time. I’ve even made a lot of friends because I’ve called on some honest brokers that were very fair to the carrier I worked with and my owner operators who were contracted under my dispatch. These brokers were very helpful and nice. The good brokers I had found went to the extent of bumping up the rate for me so that my drivers and company I worked for could make a little extra money, or would give my drivers a co check to help my drivers out with lumper fees so that my drivers wouldn’t have to take the money out of their pockets which was the carriers road expenses to live on. The carriers under my dispatch would not have to wait for the money to get reimbursed a week later. I’ve even made some long term friendships with some brokers who were honest and still stay in contact with most of them.
Yes, like in any industry you have good people and bad people and the trucking industry is no exception. I was told a few months back by a broker when I was trying to find a load for one of my carriers “if you see an extra thousand dollars wouldn’t you take it?” my reply to them was “no, that is the driver’s fuel money to help compensate for the fuel its not the brokers to take. This money should go to the carriers not in your pocket; they are the ones paying for the fuel.” This had gotten the broker vary angry at me because I am honest due to my upbringing.
These kinds of brokers who take the carriers fuel sur charges, all they are thinking about is money, living the high life and getting their loads hauled as cheap as possible. They have not had any formal training to learn right from wrong, but work according to what they had learned as a broker agent under another dishonest broker. They do things the wrong way and do not doing things according to correct procedure (yes there is a procedure to being a good broker) that is taught in a formal classroom setting.
I’ve recently noticed that a lot of brokers have gone out of business due to not only owner operators going out of business due to the fuel crisis this nation is undergoing but who are also taking the fuel sur charge away from the owner operators and small carriers who had ran under their dispatch.
Now I am not a broker yet, I am going to school to become a Broker, I have been taught not to be a dishonest broker. I was taught that if your honest with not only the shipper and owner operator and treat them fair, you will keep an ongoing business relationship with both the shipper and the carrier for many years. I was taught that if you’re dishonest to the owner operator and the shipper they will turn their backs and go elsewhere or there will be to much liability bestowed upon the company that these brokers who do not do things according to procedure learned in a classroom setting will have a lot of liability claims bestowed upon them.
Mind you there are a lot of brokers now days, which only see dollar signs and think they represent or are an agent of the shipper only. This is the wrong mind set. You are a mediator not an agent for neither party. These brokers that have not gone to school for formal training has been taught the wrong way and conduct their business in a very wrong manor. But the good brokers, they treat both shipper and owner operator with respect and dignity by being honest and staying in communication with both of them as a mediator between both parties thus acting as a mediator between both the carrier and the shipper..
So to think all brokers are bad this is the wrong misperception for I do know most owner operators do have a great working relationship with good brokers and would rather leave the bad brokers on their alone.
In the past, there has been some reluctance to use mortgage broking services because of the lack of regulation. Financial services of all types tend to be heavily regulated, and for good reason. Consumers must be protected against unscrupulous and predatory operators. And make no mistake; there are predatory mortgage brokers, just as there are predatory members of every segment of the financial community. Nonetheless, most are honest and provide a useful service. And more recently, there has been significant attention on the mortgage broking industry, and Australia is in the midst of a regulatory overhaul designed to keep mortgage brokers on an even keel.
