Finding the Best Forex Broker
When you trade forex it is important that you have a good forex broker. There are certain things you have to look for in a broker to ensure that they offer everything you need. If your broker is unable to offer you everything you need then you should look at one that does. It is important that you do not compromise on any of the important features, because this could negatively affect your trading.
Do You Have to Pay for Your Account?
A lot of forex brokers do not require a fee to be paid for opening an account with them. However, there are some who will have a fee either for opening the account or for the continued use of the account. You need to consider what you are getting for your money and if this actually makes it worth the price. You may be able to find a similar service with a broker that does not charge a fee.
The Spread Offered
Unlike other brokers, forex brokers do not receive a commission on successful trades. The spread is where these brokers make their money. You have to see what kind of spread you are being offered and whether you can get a better rate elsewhere. When looking at this you should take into account the overall market. When the market is good the spread will be better for you but when the market is bad the spread will not be as good.
The Trading Platform the Forex Broker Has
All retail forex trading is done online through forex trading platforms. Each broker will have their own trading platform which you can use as long as you have an account with them. There are certain aspects of the platform you should look at.
- The additional information you get. Some platforms are very basic and simply tell you the current rate. Other platforms have more information from charts to news that will affect the market. Seeing what the platform offers can help you determine whether it is best for you.
- Does the platform have live streaming? The best way to trade forex is on a platform with live streaming. This means that you get the most accurate information about what you are about to trade.
- The ease of use. To determine ease of use you will need to trial the platform through a demo account. You should be able to easily find all the parts you need and be able to trade efficiently.
Do You have Trade Restrictions?
The unit sizes and leverage margins you are allowed should also be considered. If you are looking to trade with high leverage amounts you have to find a forex trader who allows this. Most forex brokers will have a limit on the amount of leverage you can use.
What Support can you Get?
As the forex market is open all the time you should be able to get support from your forex broker at all times. You should also consider the type of support they will offer you. Are you going to have to raise a service ticket or do they have an instant chat facility? Certain support methods are faster than others. You should also test the support system they have in place before you begin trading live with them.