Investing in the FOREX Market can be a complex business. The assistance of a good forex broker
can be an essential element in achieving success with investments. When choosing a FOREX brokerage firms focus on objective ratings and use the list of considerations below to help you make your decision.
Minimum to open an account
Some brokers require a minimum initial deposit of $50,000. Others require $1000, or accept smaller initial deposits to open an IRA. Now its even easier to open a Mini FX account with as little as $25.
The difference between the bid and offer prices. Spreads affect the return on your trading strategy in a big way. The tighter the spread, the better for you.
One of the reasons why so many people are attracted to trading forex compared to other financial instruments is that with forex, you can usually get much higher leverage than you would with stocks. Forex trading allow you to take positions up to 200 times the value of your account. When trading forex, you are given the freedom and the flexibility to select your real leverage amount based on your trading style, personality and money management preferences.
Rollover refers to the process of closing open positions for today’s value date and opening the same position for the next day’s value date at a price reflecting the difference in interest rates between the two currencies. Rollover interest can provide an added stream of profit or loss to a trader.
Some brokers offers only the Majors. Others brokers trade a comprehensive list of over 160 Forex currency crosses include exotic currencies such as the Thai baht or the Czech koruna.
The software that you will use to search for your trades, receive information, execute your trades and manage your accounts. You should download the demo forex trading platform to ensure it will work on your system, and contains all the features you need. Sometimes the broker's demo platform differ from their real platform in terms of execution and spreads. Beware: delayed execution, slippage, rejected trades, price-skewing and stop-hunting often happen only on the real platform.
The regulated Forex brokers are accountable to the authorities. They have specific regulations to follow. With these brokers, most of the information is available online and you can easily find out their past performances. To find out a regulated Forex broker, first you need to find out what country the broker is registered in. Some countries may have flexible laws for regulated Forex traders. The local regulatory authorities must regulate your broker
Market news, daily market comments, real-time charts and economic data is a must for any forex trader.
See our Forex Brokers list for more information on choosing a best forex broker.