ForexNewsNow – Choosing the best forex broker for you can mean the difference between making a profit trading and losing your hard earned money. When you’re comparing forex brokers or contrasting two brokers, there are several things that you should look at to find the best forex broker for you. Here is what you need to look at:
All foreign exchange brokers come with special features and benefits for their traders. Two things you should look at are any guarantees to protect you against slippage on limit orders and requotes on market orders.
Bonuses are another great perk to opening an account with many brokers. Most brokers will only give you a bonus on your initial deposit but a few will give you bonuses on any deposit. Make sure that you read the terms and conditions of the deposits before you put in money to see how long you have to keep your money in the account to recover the bonus.
Other features to look for when comparing forex brokers is access to personal account managers, training materials, and even educational classes.
Perhaps more than anything else, the platform that you trade on will impact the amount of money that you make trading. Find out what types of platforms are offered and read reviews to see how quick execution times are and how easy they are to use. Mobile trading is another great perk that is offered by nearly every forex broker.
Almost every top forex broker will allow trading with the MetaTrader platform. It is the platform of choice for amateurs and professional traders alike. If you are planning on using the MetaTrader platform, check the execution times that your broker offers. Quicker executions are always better.
Foreign exchange brokers offer different account types for different deposit levels. Look realistically at the amount of money that you plan on depositing and see the different bonuses are offered at different account levels and choose the broker that offers you the best value for your money.
Two other things that you need to look for when comparing forex brokers are the availability of practice accounts and mini accounts. Opening and using either of these two accounts lets you develop your trading skills without having to risk much or any of your own money while you learn.
Spreads can differ widely between top forex brokers. Top brokers will have spreads of between one and three pips on major currencies. Trading with higher spreads can have a big impact on how profitable you are after making several hundred or thousand trades.
One important thing to look at is whether the trades with your broker are fixed or variable. If you are trading with variable spreads, use a practice or micro account to see how much to spreads change during the times you want to trade.
Customer support is something that you don’t think about until the worst happens, and then you absolutely need it there. Almost every forex broker will offer 24/7 support, but the quality can vary. Before you deposit at your broker, ask the broker a few questions. Look at the response time and the type of response that you get and read reviews to determine how good customer support is.
Regulations are another important area to look at when comparing forex brokers. Every broker should be regulated in its home country and in other major countries as well. The major regulators are CySEC in Cyprus, the FSA in the UK, the SEC in the USA, and BaFin in Germany.