For a beginner, knowing how to do a Forex trading account comparison is important skill. The Forex market can make a person wealthy. But if a person does not prepare properly, he can also end up poor. One of the major points of preparation is being able to pick the best account and broker for your future trades.
Let’s look at Point 1: What services does the broker provide for their Forex platform? When comparing the various Forex accounts, you need to make a list of what they provide for your money. Here are some things to look for as a beginner to Forex.
(1) Do they provide demo accounts and micro accounts for the trader?
Demo accounts are important so you can see and use the actual platform. Micro accounts (accounts that allow you to trade with $ 500 or less) are important so you can test new trading schemes without having a lot of money at risk.
(2) What trading platforms do they offer? Is it proprietary to the brokerage or not?
Some Forex brokerages provide access to multiple platforms while some lock you in to their own platform. Avoid the latter services because you may want to shift your trading in the future to another service which may not use that trading platform.
(3) Do the platforms have real time data feeds if your trading style demands it? Do they offer 24 hour support and general Forex training?
Forex is a 24/7 trading event so your broker’s support should follow even if you’re calling at 3am on a Sunday. And for the beginner in Forex, training would be a valuable resource.
Let’s now look at Point 2: When making a Forex trading account comparison, know what are the costs of the service?
When dealing with Forex transactions, one has to be aware of commissions, spread and rollover.
Some accounts will add commission charges to transactions. Other accounts will have a higher spread (difference price between how much you are charged to buy a currency and how much you can sell it for).
Other Forex brokers charge a rollover for transactions held overnight. All these charges add up so they should be taken into account. But don’t necessarily rely only on cost because some accounts may give you better service at a slightly higher price than a low cost service that provides little support.
Now let’s look at Point 3: What associations is the platform connected to and what are general opinions about the service?
Many quality brokers are connected to trading agencies such as National Futures Association (NFA). In addition, there are many Forex trading communities that provide honest feedback on how particular brokers treat traders. Take some time to see how others have liked or disliked various brokers before committing to the service.
Taking some time to go over these three points in a Forex trading account comparison between brokers could save you a lot in the long run. You are developing trading skills that could supplement or replace your current job or career. Finding the best account and broker is one of the first and most important steps.