The first aspect of forex broker reviews is to understand that
each trading platform for each currency broker is different, and will
offer different features. Some companies will provide 'one click
dealing', other companies will let you take trades directly from the
chart. To a large degree, it will be a matter of preference as to which
platform a forex trader will feel comfortable with. However, a diligent
forex trader will check how reliable the platform is, particularly
during periods of increased market volatility.
An often overlooked
factor when doing a forex broker review, is to look at how they deal
with slippage and trade execution. This is especially important if you
trade the news, when spreads can widen considerably. Some unscrupulous
brokers have a tendency to widen them to the extent that it is
impossible to trade profitably at the times of news. You can do your
research here by opening a demo account first, and to test the platform
extensively.
A final aspect of conducting thorough forex broker
reviews is to check how they deal with margin calls. As a matter of
routine, all brokers allow a trader to trade on margin, with leverage.
Whilst this means that you can multiply your profits, it also means that
you can take a huge loss if the trade goes against you.
When a
trade starts to go against you, some brokers will use this as an excuse
to close out your trade, thus creating a significant loss for you, and a
gain for your broker. So check beforehand with the broker to ensure
that they will deal with this issue fairly, at least by giving you the
opportunity to reduce the size of the trade, without closing it out
completely.
James C Smithson is a professional forex trader. You can get more
information about forex broker reviews
[http://www.theforexvillage.com/forex-broker-reviews.html] and currency
brokers [http://www.theforexvillage.com] at his website specially
designed for currency traders, The Forex Village.
