Forex brokers are companies that you are always going to need when you trade forex. The first forex broker that you use does not have to be the one that you continue using. There are a number of reasons why you should not stay with the first broker that you found. There are also a number of reasons why changing forex brokers may not be in your best interests. You should consider all of this when you have more experience on the market and are looking to expand your trading.
What You Need from Forex Brokers
When you first look for a forex broker you are going to have certain needs that you are going to consider. These needs are the ones that an inexperienced trader will have. Some of these needs will include an easy to use trading platform, high amounts of integration and only the most commonly traded currency pairs. As you trade your needs will evolve until your first forex broker no longer meets all of them.
A more experienced trader may be looking for different currency pairs or want to use a strategy that is not supported by their broker. The spreads that you need to get may also change and you could start looking for a broker that offers a different spread scheme.
The Accounts on Offer
Most brokers will offer three different trading accounts and they are the micro, mini and standard account. The standard account is the account that most expert traders will use because it offers the most profits. The micro and mini accounts are recommended to new traders because they limit the risks and losses that you face on the market.
While most brokers offer the same type of accounts the features that come with the accounts may vary. There are many traders who start to use more leverage the more experience they get. This is due to their increased understanding of the risks and the ways that leverage can be used. However, their first broker may not offer the leverage that they want to use. A lot of new traders look at brokers that have limited amounts of leverage to remove the temptation of leverage. You will have to move to a different broker if you want to get the leverage that you need.
The Scalping Broker
Scalping is a trading strategy that is not recommended to new traders. The fast-paced nature of this trading strategy is thought to be too risky for the new trader. The high amounts of leverage that are often used will also make it too risky. Once you have experience on the market you may want to try your hand at scalping.
The biggest problem that you will face is that your broker does not allow this. There are a lot of brokers that frown on the use of scalping. If you broker is one of these then you have to find a different one for scaling. There are a number of forex brokers that specialise in scalping and offer the features that scalpers will need.