A few factors should be considered when choosing a forex brokerage. Brokers don’t care about how much money you make. Forex trading is complicated and professional forex brokers can make a big difference to your success. Objective ratings will help you select a forex broker company – more about the author.
Six Things to Consider Before Choosing a Forex Broker
1. You can open mini-forex account with as low $25 as you like. Others prefer to see at minimum $50,000. Before you begin looking for accounts within your budget, you should think about your financial goals.
2. Spreads have a big impact on the return of your trading strategy. Spreads are the difference between the offer and the bid prices. Spreads matter! The tighter they are the better.
3. Forex trading offers many benefits over other financial instruments. One of these is the possibility to leverage high. Forex trading offers you the opportunity to invest up to 200x your account’s total value. This is an advantage that stock trading doesn’t offer. Compare the leverage options offered at different brokerages.
4. Rollover Policy – This is the practice of closing existing positions and opening the exact same position tomorrow for the value that it will be. The price must equal the difference between currencies. This is an option to either make profits or lose money.
5. Trading Platform – This software is what you use to search, find and execute trades. It also provides information and allows you to manage your accounts and track your trading activity. Download the demo to ensure it is working and contains all features.
6. Regulations: All Forex brokers licensed are required by law to register with the authorities. They must observe strict policies in order to protect their clients and themselves. Forex market is full of unsavory characters, so be careful.