This article looks at the different considerations to make when changing Australian forex brokers
When new traders enter the forex market, they will discover that a forex broker is essential to trading. It should be noted that you are not required to remain with the first forex broker you choose. There are numerous reasons why you should not remain with the first brokerage chosen, but there are also numerous reasons why one should not move from the initial brokerage. It is vital that you consider the points laid out below before making the move between Australian forex brokers.
1. Requirements of Australian forex brokers
There are various factors to look at when perusing the market for forex brokers and one of these factors is your personal trading requirements. To be an effective trader you must have a broker that meets all your needs. The basic needs required by a new trader will include an effective forex trading platform with high amounts of integration.
Beginner traders are advised to trade with the major currency pairs so there is no need for the broker to handle obscure currency pairs. However, as a trader’s needs evolve so should the forex broker be able to meet these requirements. If your current broker is unable to do this, then you should consider looking elsewhere.
Unlike the new trader, the experienced trader will consider using specific strategies with obscure currency pairs. In this instance they will require Australian forex brokers who are offer facilities for the strategies and currencies. Furthermore, the associated spreads may vary and you should examine which broker will offer the best deal.
2. The scalping forex broker
The scalping foreign exchange trading strategy is an exciting and highly risky one. When employing leverage as part of scalping, one is only increasing the risk which can lead to devastating losses if not used appropriately. This strategy is not recommended for new traders as it is too dangerous and requires practical experience to be profitable.
The greatest problem with scalping is that many forex brokers do not allow for this strategy. If you are using this strategy you must seek out a broker offering services for scalpers.
3. The trading accounts available
The majority of forex brokers will offer three different types of trading accounts – the micro trading account, the mini trading account and the standard trading account. Some brokers will offer a premium trading account, however this is targeted at large corporations and hedge funds.
The standard trading account is the account most experienced traders will choose as it offers the largest profits. The mini and micro accounts are most suited for beginner traders as they are limit the amount of forex risks and losses.
While many Australian forex brokers offer the same accounts, the associated services will differ from broker to broker. There are many traders who utilise leverage as they gain more experience. This is due to an increased understanding of the risks, which leads to more effective use of leverage. Many new traders will examine brokers that have limited leverage levels in order to remove the temptation of leverage. You may find a need to change forex brokers so as to receive the leverage levels you want.