It is important that you have a forex broker that is right for your type of trading. There are a lot of forex brokers that have limitations which stop them from offering the best experience to certain traders. To avoid this you have to look at what makes forex brokers right for you. All traders have to carefully consider their forex broker because of the major impact that the broker has on your trading.
Are You Paying for the Account?
A lot of forex brokers do not require a fee to be paid for opening an account with them. However, there are some who will have a fee either for opening the account or for the continued use of the account. You need to consider what you are getting for your money and if this actually makes it worth the price. You may be able to find a similar service with a broker that does not charge a fee.
What Trading Platform Are You Getting?
All retail forex trading is done online through forex trading platforms. Each broker will have their own trading platform which you can use as long as you have an account with them. There are certain aspects of the platform you should look at.
- The ease of use. To determine ease of use you will need to trial the platform through a demo account. You should be able to easily find all the parts you need and be able to trade efficiently.
- The additional information you get. Some platforms are very basic and simply tell you the current rate. Other platforms have more information from charts to news that will affect the market. Seeing what the platform offers can help you determine whether it is best for you.
- Does the platform have live streaming? The best way to trade forex is on a platform with live streaming. This means that you get the most accurate information about what you are about to trade.
Forex Brokers and Spreads
Unlike other brokers, forex brokers do not receive a commission on successful trades. The spread is where these brokers make their money. You have to see what kind of spread you are being offered and whether you can get a better rate elsewhere. When looking at this you should take into account the overall market. When the market is good the spread will be better for you but when the market is bad the spread will not be as good.
What Restrictions are There?
The unit sizes and leverage margins you are allowed should also be considered. If you are looking to trade with high leverage amounts you have to find a forex trader who allows this. Most forex brokers will have a limit on the amount of leverage you can use.
How Good is the Support?
As the forex market is open all the time you should be able to get support from your forex broker at all times. You should also consider the type of support they will offer you. Are you going to have to raise a service ticket or do they have an instant chat facility? Certain support methods are faster than others. You should also test the support system they have in place before you begin trading live with them.