It is not easy to know what to
look for in a Forex broker who you will deal with him, especially in a market
characterized by such a degree of complexity as is the case in the currency
markets. But if you want to work in this market will need to deal with a good
Forex broker. It may be tempting to simply be directed questions directly to
the broker to know from him what that can do for you, but you cannot rely on
brokers and only to get the correct answer. For this instead, I have compiled
some of the few things that should be put in mind when choosing a Forex broker.
You will need to broker Forex which displays different spread prices are, the
spread, which is calculated in the form of points, is the difference between
the price at which you can sell a particular currency and the price at which
you can buy at a certain point in time. Since the Forex brokers do not charge a
commission for their services, this difference is the return which they will
receive. Low spread prices will save you some money.
In parallel with this, you should
be looking for a Forex broker who has a link to a financial institution with a
good reputation. Unlike stock brokers, the Forex be linked to banks and major
lending institutions. Companies also must be registered with the Futures
Trading Commission ((FCM and also be subject to the regulations of the
Commission on trade commodity futures contracts (CFTC).
Once that limit the choice of
these brokers who will not cost you a lot of money as well as enjoying a good
reputation, you will begin to look at the tools of the trade they make. And
Forex brokers are usually offering to their customers’ different trading
platforms, completely as it happens in the other markets. These platforms are
viewing the graphs in real-time, technical analysis tools, data and instant
news can also provide support to the various trading systems.
Before joining one of these
companies, request copies experimental tools that they offer. Brokers typically
provide summaries of technical and fundamental market, notebook economic and
other search tools to help you do a successful trade. Wandering in marketing
your trip until you find a Forex broker who will give you everything you need
in order to achieve success.
The other point that must be
carefully evaluated is options leverage to be provided by your broker likely.
Leverage is a need for intuitive because of currency fluctuations in the form
of fractions of a cent. Leverage is expressed as a percentage of total
financial capital available to the trade and the actual head of the owner. For
example, while the broker offers ratio leverage 1: 100, this means that he will
loan $ 100 for every $ 1 of the actual head of the owner. Many brokerage firms
offer financial levers of up to 1: 250. If he was a young head of the owner
will need to brokerage services that provide you with high levels of leverage
to be able to make a reasonable profit.
If capital is not a problem for
you, any Forex broker offers a wide range of leverage options would be a good
choice for you. Variety of leverage options allow you to change the amount of
risk you want to carry around during trade. For example, the small lever (and
thus with limited risk) may be preferred if you trade in currency pairs, which
is characterized by a high degree of volatility.
In parallel with these different
levels of leverage, look for brokers who offer various types of trading
accounts. Many brokers will find them provide two or more of these accounts.
Smaller account in this regard so-called mini account and often requires a
minimum deposit ranges from about $ 300. Mini account is also usually
accompanied by high levels of leverage.
Standard account will allow you
to trade with different composition of leverage, but it requires a minimum
initial capital up to $ 2000. Finally, there are special accounts, which
usually require a large amount of capital to be opened. Also usually does hang
at different levels of leverage available to traders use. As well as tools and
other additional services be customized to the owners of these accounts. You
will need to make sure whether the broker you choose provides leverage tools
and services appropriate to the amount of capital they are going to work.
Brokerage firm that meets all
these needs are supposed to be good for the Forex broker can work with him, but
will still need to ascertain the extent of their honesty. Intermediaries who do
not have integrity they might some actions such as the fraudulent manipulation
of the buy and sell prices (usually referred to as the fishing operations and
Priest) may also do some other bad behavior that eventually cost you your
money.
Definitely you will not find any
brokerage firm recognizes that they carry out such acts, but there are many
ways you can be sure of this if they practice it. The best ways to learn more
about Forex broker that you intend to deal with it is to talk to other traders.
There is no list or an organization of all unfair practices, but visit the Internet
forums that displays discussions about these things, or even talk with some
traders often will reveal to you is the honest broker than others.
You should also see whether the
brokerage company has strict rules for the sidelines. Since you are trading
with borrowed money, the Forex broker will have the final say in how much risk
you can tolerate it. You agree that when you sign a contract when you open a
margin account. This means that the company can buy or sell based on their
estimates, to achieve the interests of the brokerage firm, which could have
consequences influential it.
Suppose, for example, that you
have a margin account, and start your trading center to deteriorate sharply
before recovering to record peaks. Even if you have enough money to cover this
initial decline; some brokers they may liquidate your position with the first
margin call when the account reaches a low point. This behavior on their part
will cost you dearly. For this must know whether the company may carry out such
actions by talking with other traders. Be familiar with all aspects related to
Forex mediator before to take the decision to deal with them will allow you to
begin work in the Forex market and you are great confidence in what you're
doing.
