It's pretty obvious that to get started in forex trading, you are going to need a solid, reliable broker. If you don't have a good broker with a dependable trading platform, you won't be able to get in and out of the market. That's why it pays to do some research and look for recommendations from other traders so you can choose the right firm for your account.
While all forex brokers offer a similar range of products and services, there are big differences in the experience of the people involved, the tools you have access to, or the service you get as a customer. And just like in any industry, some brokers are far better to deal with than others, according to who you listen to. While it's true that some people feel better trading with one broker over another, your research will identify trends that can remove the inherent biases in people's opinions and give you the real facts.
But regardless of who you choose, any broker you put on your short-list should meet at least some minimum standards. Here are five of the main criteria you should check off before you decide on the right broker for you.
Criteria 1 - Consistently Low Pip Spreads: Spreads between the bid and ask are your main cost in trading the forex market. You'll want an account with a broker who charges very low spreads on transactions, regardless of the market's volatility. That will let you keep your trading costs down, which can make a big difference to your profitability.
Criteria 2 - Small Minimum Sized Lots: Forex trades are taken in what are called lots. Larger lot sizes mean the potential profit or loss on the trade is higher. New traders should start out using a broker who lets you trade micro or mini lots, which are a percentage of a full lot. This will let you get comfortable trading, and you can graduate to larger lot sizes in the future.
Criteria 3 - Error Free, Fast Trade Execution: Timing and trend are what trading the forex market is all about. You have to get this right, so it's important that you choose a broker who gives you instant order execution most of the time. That's because getting slow order fills can cost you a LOT of money every year if you aren't on top of them.
Criteria 4 - Technical Analysis Tools: There are quite a few different forex trading styles, and each depends on analysing various indicators that help you to work out when to enter and exit the market. At the beginning, it's important that your broker has access to a complete set of trading tools so you have everything you need to start trading profitably.
Criteria 5 - Flexible Leverage Is Available: Being able to use leverage for trading the forex market is what makes it so potentially profitable. The leverage you have affects the amount of risk you are taking, your position size, and the the profits or losses you can potentially make. New traders should use the lowest available leverage to get started so you don't blow up your account in your first few trades. That means you'll need a broker who offers flexible leverage percentages so you can stay safe early in your career.
As you go about choosing your new broker, remember these 5 criteria and you'll be in good hands. You are just getting started trading one of the most active, exciting, and potentially profitable markets in the world. I trust you enjoy learning to trade as much as I have done.
While all forex brokers offer a similar range of products and services, there are big differences in the experience of the people involved, the tools you have access to, or the service you get as a customer. And just like in any industry, some brokers are far better to deal with than others, according to who you listen to. While it's true that some people feel better trading with one broker over another, your research will identify trends that can remove the inherent biases in people's opinions and give you the real facts.
But regardless of who you choose, any broker you put on your short-list should meet at least some minimum standards. Here are five of the main criteria you should check off before you decide on the right broker for you.
Criteria 1 - Consistently Low Pip Spreads: Spreads between the bid and ask are your main cost in trading the forex market. You'll want an account with a broker who charges very low spreads on transactions, regardless of the market's volatility. That will let you keep your trading costs down, which can make a big difference to your profitability.
Criteria 2 - Small Minimum Sized Lots: Forex trades are taken in what are called lots. Larger lot sizes mean the potential profit or loss on the trade is higher. New traders should start out using a broker who lets you trade micro or mini lots, which are a percentage of a full lot. This will let you get comfortable trading, and you can graduate to larger lot sizes in the future.
Criteria 3 - Error Free, Fast Trade Execution: Timing and trend are what trading the forex market is all about. You have to get this right, so it's important that you choose a broker who gives you instant order execution most of the time. That's because getting slow order fills can cost you a LOT of money every year if you aren't on top of them.
Criteria 4 - Technical Analysis Tools: There are quite a few different forex trading styles, and each depends on analysing various indicators that help you to work out when to enter and exit the market. At the beginning, it's important that your broker has access to a complete set of trading tools so you have everything you need to start trading profitably.
Criteria 5 - Flexible Leverage Is Available: Being able to use leverage for trading the forex market is what makes it so potentially profitable. The leverage you have affects the amount of risk you are taking, your position size, and the the profits or losses you can potentially make. New traders should use the lowest available leverage to get started so you don't blow up your account in your first few trades. That means you'll need a broker who offers flexible leverage percentages so you can stay safe early in your career.
As you go about choosing your new broker, remember these 5 criteria and you'll be in good hands. You are just getting started trading one of the most active, exciting, and potentially profitable markets in the world. I trust you enjoy learning to trade as much as I have done.
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