The choice of your broker is one of the most important decisions
in currency trading. A good and bad broker can make a lot of difference
in your FOREX trading experience, therefore it is very important that
you select a right broker. Like stockbrokers, currency brokers provide
the trader a trading platform, market information, research and various
trading tools to enable the trader to make the best decisions. Here is a
quick guide to selecting the best FOREX broker in the market.
Reputation
is the most important thing to look out for when choosing a FOREX
broker. You want to deal with a reputable and experienced broker that
can provide you with the best support and services possible. A long and
proven track record is the best testimonial of an efficient and reliable
service. Oanda and CMS FOREX are examples of some of the more reputable
brokers in the market.
Another important criteria are the spreads
and service charges imposed by the brokers. Generally, you should pay
no more than 2 - 3 pips per transaction on any major currencies. This
factor should be balanced against the tools and the information provided
by the broker. If the broker offers a good range of trading tools,
up-to date news, and advice that are very helpful to you, it may be
worth it to pay a little more for the extra support.
The margin
provided by the broker is another popular consideration when choosing a
broker. Brokers provide leverages anywhere from 100 to 400 times of the
capital in your account. Marginal trading is only recommended for
experienced traders due to the high risks involved. For beginners you
may want to find a broker that offers a great FOREX demo account. This
account will allow you to practice your techniques and strategies before
you start to trade with real money.
Many brokers in the market
offers free trial offers that allow you to test out their trading
platform and support services before committing. You can make use of
these trial offers to test out the services of various FOREX brokers
before selecting the broker that suits you best.
Thomas Strignano is a retired Chief Foreign Exchange Trader for a
major Italian Bank. His 20 plus years of trading (Market Making) in the
commercial Forex market makes him an expert in the field. He has
developed his own proprietary trading systems and tested them real time
in the interbank market. He has trained a number of Forex traders to be
profitable, some who are still active at Major International Banks. Tom s
major focus is on market timing techniques with technical analysis,
forecasting(future) pivot points for major market moves. His overall
objective in trading Forex, is use of good Money management, low risk,
high reward positions. Please see
[http://www.tomstrignanoforexexclusive.com]
