Joining Forex Trading

Things you must consider when you choose your forex broker

1. Regulation You must make sure that they are fully regulated with the relevant authority. So if they are based in the US, for example, then you should ensure that they are regulated by the NFA or the CFTC  Similarly if they are a UK-based company, then they should be regulated by the FSA.
If you go with an offshore forex broker that is completely unregulated, for example, then you are taking a huge risk because you may never see your money again.

2. Tighter Spreads For long-term traders the spreads offered by your forex broker is not so much of an issue. But if you intend to trade the shorter time frames then you have to choose the broker with tight spread. We advice you to choose a broker that offers spreads of around 2 or 3 pips for the EUR/USD and GBP/USD pairs, and certainly no more than 4.

Joining Forex Trading

Ok. You feel that you like trading forex and you need to start trading, but you do not know how to start, so you have to read this. First you must choose an online broker carefully and we will help you in that, then you open a demo account to practice the trading, when you feel that you ready to start open an mini account to avoid a big losses as a beginner when you start gaining money you can trade lots instead of mini lots.

3. Leverage The amount of leverage offered by different forex brokers varies greatly. Some may only offer 100:1 leverage while some may offer as much as 400:1.  100:1 is more than enough to avoid more risk.

4. Demo Accounts demo accounts is very important for new forex traders, it will give you the chance to test the platform and the tools available and give you the change to practice the trading without any risk. If you are new to forex you must choose a broker you must choose broker offers demo account, not all of them do so.

5. Account Types Although all forex brokers cater for the well capitalized traders, not all of them cater for those traders who wish to trade smaller positions. Therefore if you yourself fall into this category, then you should look out for brokers that allow you to trade mini-lots (equivalent to around $1 per pip) or micro-lots ($0.1 per pip).

6. Minimum Deposit If money is tight or you want to start off small (which is always a good idea), then you will want to choose a forex broker that requires a relatively low minimum deposit when opening a live trading account.

7. Charting Software Nearly all forex brokers provide some kind of charting software free of charge when you open an account with them. It may be the highly popular Metatrader 4 platform or it may simply be a no-frills charting package. So therefore if you do want to use some of the more advanced charts, then I suggest you go with a broker that provides the Metatrader 4 or ProRealTime platform.

8. Additional Services it's very important that your broker provides you with additional services such as daily commentaries, market analysis, educational materials and the option to deal through your mobile phone.

9. Customer Service If you are just starting out as a forex trader you will probably have several questions and queries when you first open an account with a broker. So therefore you should try and join a broker that offers a good of customer service.