The Forex Broker will also give you leverage so that you can trade on margins and control much larger sums that you have yourself.
Of course this is up to you how much you use and when.
Remember leverage can be your friend if used logically but can compound your losses if you are not careful. But we will talk about this later.
There are several things to take into account when choosing a Forex Broker. Some of the most important points to consider:.
1.Reliability
Finding a broker that you can trust is not as straightforward as you might think. The Forex market operates worldwide and there is no global regulatory body, so some brokers are unregulated. Check where their business is based and what registrations and memberships they have. American brokers should be registered with the Commodity Futures Trading Commission (CTFC) and/or the National Futures Association (NFA). Other countries have other associations.
Please also check various forums to see if a broker has any big problem by way of user feedback. However, be sure to get several views. Do not accept one person's point of view as fact. That person may have personal or financial reasons for praising or criticizing a broker.. Services provided
Remember the Forex market is a 24 hour market, five days a week. You will want your broker's trading software to be live online all of this time (most are). You may also want to check if they have 24 hour customer support Monday through Friday.
2. Availability
Check that they cover all of the major currency pairs that are USD against EUR, JPY, GBP, CHF, CAD, and AUD. They should also offer at least some cross pairs of the major currencies that is two of the other currencies not including the US dollar. All brokers will offer charts and technical analysis.
Check that these meet your needs. You will also want to check whether they offer instant execution of orders at the displayed price without slippage.
You can upload an auto trader like Fap Turbo with all the trusted Brokers for easier and skillful trading.
3. Charges
Forex trading brokers generally do not charge a fee or commission. Instead they make money from the spread, which is the difference between the bid and ask prices of a currency pair.
Spread is usually in the range of 1-3 pips, depending on the broker and the currency pair, but it can vary at times of volatility. You should be aware of exactly how they make there money and the Trusted Brokers are only too happy to spell it out for you Please ask them!
The size of the spread can make a big difference to whether you make profits in the long term. If you know which pairs you are likely to trade most often, the spread on those pairs will be more important to you than others.
4. Minimum account and lot size
While there are certainly large accounts, the minimum investment will be an important factor. So as you want to trade Forex the good news is the Trusted Brokers can have you up and running with some of them wanting only from $100 to start trading..
5. Leverage
Leverage is the factor that determines how much you can control with the money that is in your account. You can often control a lot that is up to 100 times the money that you actually put in, with your broker covering the rest.
Warning: Some brokers offer even higher leverage but be aware that the higher the leverage, the more you are risking on each trade.
Talk to your Broker and see what is right for you
I hope you have found this useful and I would suggest looking at the Trusted Brokers list on my Website to give you a head start!
Thank you and GREAT TRADING
Bill
I have been tarding since being a "newbie" in 2005 and have seen the fantastic opportunities that have arisen over the years, but please look at my website for Trusted Brokers to steer you in the right direction!
My website is: [http://forexconnector.com/forex-broker-choosing-great-one/]
All These Other Articles can be viewed from the Website as well
o Forex Training Guide For Long Term
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o Forex Markets-Trade Like A Pro
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o Best Forex Invincible Review
o Forex Secrets Exposed with Fap Turbo
o Penny Stock Trading Revolution
o Forex Broker -Choosing a Great One
o Forex Signals
o Forex Bot- The Great Assistant
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o Forex Markets- The Smart Way To Trade
