How to choose a good quality forex broker
After you are confident in the way you will trade forex markets, along with the money management rules that you will apply, maybe it’s time to find a good forex broker.
There are many brokers out there to choose from there, the value while doing initial research before choosing forex brokers. Some things that must be considered when choosing forex brokers include:
Spread is the main way forex brokers generate their profits. Spread is the difference between prices where you can buy currencies, and prices where it can be sold at a certain time point. When searching for brokers, pay attention to their spread costs. The less deployment, the more money you will save and the faster you will get profit in trading.
Quality registered institutions
In the United States, the forex broker must be registered as a futures commission merchant (FCM) with the commodity futures committee (CFTC) http://www.cftc.gov. They must also be members of the national futures association. You can verify the CFTC broker registration and NFA membership status at http://www.nfa.futures.org/basicnet/. If the broker is not reserved by a reliable institution, don’t bother with them it’s not worth the risk.
Leverage is needed to trade currencies due to the fact that the price movement is only the penny faction. In general, leverage is declared a ratio between the amount of capital you provide to the number of forex brokers will lend you. For example, take the sample ratio of 200: 1. What this means is that the forex broker will lend you 200 times the amount of money you provide. Keep in mind the more leverage you use, more and more risks are in getting margin calls, but you also have the potential for greater profits and vice versa. In general, when starting with a small amount of capital, make sure that the forex broker you use offers a variety of leverage options. This will give you more control of the risk exposure you must prepare.
The majority of larger forex brokers offer various trading tools to their clients. Most brokers can give you real-time currency prices along with various other tools. Make sure your forex broker provides all the tools you need to trade. Other tools can include:
o Charting real-time currency prices
o Technical analysis tool
o Comments Fundamental Analysis
o Economic calendar
Good forex brokers offer two or more account types. For example the smallest account size is known as a mini account. The mini account requires you to provide at least say $ 500, and with it you are offered a high number of leverage. Leverage is needed to benefit from a small number of trade capital. The standard account also has minimum capital requirements, usually somewhere between $ 1,000 and $ 2,000. In the end, it is important to choose a broker that has the right leverage and service that suits your needs to go with the amount of capital that you have dedicated to trading the currency market.
Forex is a 24-hour market; Therefore 24-hour support is very important. Can you contact the company by telephone, email, chat, etc.? Do customer support representatives seem to know what they are? Customer support quality can vary greatly from the broker to the broker, so be sure to check it before opening an account.
One thing you can do is contact a number of forex brokers to feel how quickly they can respond to questions. If they don’t respond quickly, and with reasonable answers don’t give them your business.
It is a good idea to talk to other forex traders in an effort to find out who is a better forex broker out there. As in any industry or business, there are some clever ones. Forex brokers don’t exce