This article looks at the considerations you have to make to sort good forex brokers from bad ones.
All retail traders need to work with forex brokers to trade on the market. However, you need to find the forex broker that is right for you and the way that you are trading. This makes it important for you to know what makes forex brokers good for you. There are certain points that you have to consider when you look at forex brokers. These points include the currency pairs on offer, the leverage you can get and the trading platform you will use.
It is important that you determine the currency pairs that a forex broker offers before you open a demo account. While demo accounts can be opened without any obligations it does save time knowing what is on offer first. There are thousands of currency pairs that can be traded on the forex market. However, forex brokers will not offer all of these pairs. Most brokers limit their offerings to the most commonly traded currency pairs. Of course, there are other brokers that only offer a small number of currency pairs which do not cover all the commonly traded pairs.
If you are looking for a specific pair then you have to determine if the broker offers this before you open an account. The more exotic the pair the harder you will have to look for a broker that offers this.
Forex Brokers Trading Platform
When you trade on the market you will be doing this through the trading platform that your broker provides. It is important that you find a trading platform that offers you everything you need. If you want charts with your platform or a news feed then you have to look for a broker that offers you this. If you are unsure about the platform a broker offers then you can try it out with a demo account.
One of the reasons why you should use a demo account is to get used to the trading platform. If you are uncomfortable with the controls of the trading platform then you may have to change brokers. Of course, if you feel that you can live with the small issues you have then you may not have to change brokers.
When you are creating your trading system you will determine the amounts of leverage that you are going to trade with. You have to keep this in mind when you look at the different forex brokers. The right forex broker for you will offer the amount of leverage that you want to use. Most traders use small amounts of leverage because of the risks involved. However, there are some traders who are looking for extreme leverage.
If you are one of these traders then you have to consider what leverage your broker offers before you open an account. The amount of leverage could be regulated depending on the country the broker is located in. In unregulated countries brokers are able to offer as much leverage as they want. However, this does not mean that all the brokers will offer high leverage. There are many brokers in unregulated countries that limit their leverage.
It is important to find a suitable forex broker that you can easily work with and obtain the services you require. Make sure that you do thorough research before you sign up with a forex broker.
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