One of the key requirements when looking to move into the world of Forex trading is to find an appropriate Forex broker to use. Not too long ago there were only a few of very qualified brokers to use. However, not that has changed and there are many. Making sure that you choose on that is right for you and your trading plans is critical to your success.
The fact that the market has matured and there are now dozens of quality Forex brokers available, means that the spread and price points are not that different between brokers. However, there are variations between brokers and one needs to check each of them out. The time that you take to review the various brokers will allow you to find one that offers the best deal at the time as well as one that meets your Forex broker needs.
There are several points to consider when choosing your first, or any, Forex broker.
· What is the margin that is provided? It usually ranges between 1-4%.
· What are the currency spreads? For example, with EUR/USD it is usually be about 3-4 pips.
· What amount of money do you need to start an account?
· What is the small trade size fee? While some do not charge for that, others do and you need to be aware of what the costs might be.
· What, if any, other fees are there that you need to be aware of?
· How long had the company been in business? And what is their record and business history? If there are any issues, walk away and find another company.
· What kind of a Forex trading platform and charting package do they offer? And do they offer you a demo account to practice on?
A couple of the points above need a bit more detail due to their importance in your success.
When choosing a Forex broker, one of the most important features is what is their trading platform? Does it download to your computer or is it one that you need to login to in order to use. Based upon your lifestyle and access to the internet, this can be critical. In order to determine if the Forex brokers platform works for you, make sure to test out the demo account that many brokers have. If you do not have one to test you can never be sure that this broker is the one you want.
As part of the Forex platform, you will be given access to charts. There is a broad spectrum of quality in the charts that you receive. Again, this makes being able to test a demo system critical to your success. Make sure that you can draw lines and plot indicators. Being able to write notes is also helpful.
Forex trading obviously has some risks associated with it as does any investment. However, the right Forex broker can make it easier for you to be successful in trading. Making sure that you’ve found the right Forex broker that has all of the tools that you need allows you to focus more on choosing the right trades rather than trying to make a trading platform work for you.