There are a lot of Australian forex brokers looking to get your business. It is important that you know how to choose the best Australian forex brokers. If you do not know this then you could end up using a broker that is bad for your trading. When you do this you will find yourself making a loss on the market.
The Fees You Have to Pay
Most online forex brokers do not charge commissions to execute trades. The broker normally makes his money on the spread between the offer and bid prices. Some of the brokers provide you with a choice of a commission-based pricing structure or a smaller spread cost. Some brokers offer a per trade commission basis. If this is the case with your forex broker of choice, you need to calculate if this is to your advantage rather than choosing the spread-based method.
What is the Leverage You Can Get?
Leverage can be viewed as good or bad. Over the past few years the maximum leverage offered to traders has been reduced by regulators. In Australia and the UK, you may still be able to obtain leverage levels as high as 200 to 1, but in the US the levels have been reduced to 50 to 1. The professionals in this market have stated that brokers who offers their clients leverage levels or more than 200 to 1 do not offer concern for the client and that they are probably not registered with any of the regulatory boards in that region.
The Resources Australian Forex Brokers Offer
You need to know if the broker offers you all the necessary tools for you to trade effectively. There are several questions that you need to pose to ascertain this.
- Do they offer a user-friendly trading platform?
- Do the reporting options include monthly statements, detailed transaction listings and profit and loss reports, etc?
- Are you comfortable with the trading platform on offer?
- Are charting tools available?
- What types of charting tools are available?
- Do they offer mobile trading?
- What types of reporting options are available?
- Are Android apps available?
- Do they issue rate alerts?
- Are iPad or iPhone apps available?
- How are the rate alerts delivered to you?
- Do they provide live commentary and if so, how often do they provide it?
How Good is the Order Filling?
You should be aware of the procedures regarding your stop-loss or take-profit order fulfilling. You need to know if your stop-loss sell orders will be filled as soon as the set bid price matches the stop price. You also need to know if these stops are guaranteed. If the stops are guaranteed, confirm any other terms and conditions linked to this type of guarantee. If you research online brokers, you should be able to find this type of information on their websites.
How Good is the Customer Support?
As this trading market operates 24 hours of each day, you need to know if your forex broker offers this level of support. The best forex broker will normally be available 24 hours per day to allow adequate support for their clients. You need to determine the methods of access to customer support. Will you be able to access customer support by telephone, email and chat? The customer support offered by brokers varies greatly and you should ensure that you are happy with the level of support available.
These are a very small number of the points you should consider. Most importantly, you need to be sure that you find the best forex broker who is reliable and trustworthy.
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