If you decided to become a Forex trader the very
first thing you have to do is to choose a good Forex broker. For a
beginner it can be a real challenge. A broker is a person or a company
that buys and sells orders according to the trader's decisions. Brokers
earn money by charging a commission or a fee for their services. There
is a great deal of on-line Forex companies and it is very difficult to
choose one to entrust money.
The main factor you should pay
attention to is reliability of a company you are going to work with. In
order to minimize financial risks it is strongly recommended to choose
a regulated Forex broker supervised by a trustworthy regulatory
authority (such as NFA, CFTC in United States; CIPF, OSC, BCSC in
Canada; FFAJ in Japan; ARIF, FDF, GSCGI in Switzerland).
should make a serious research selecting a company you are going to
deal with. Try to find out details of your prospective Forex broker
activity: how long it has been working at this market, if it has an
irreproachable reputation, if its clients are satisfied with their
broker. Read not only advertisement at a broker's official site but
also reviews at independent internet sites.
Pay attention at
spread and commission. Spread is a difference between a bid price and
an ask price. If a Forex broker's spread is very high you income will
be minimal no matter how good you trading strategy is. At the same time
you should realize that no broker is going to work free of charge. If a
Forex company declares zero or a very low spread it may be compensated
in some other way, for example, charging fees and commissions or
pleading the effect of slippage (difference in price between the time
you place an order and the time it is executed). That is why it is
important to make clear and compare all the explicit and implicit fees.
into consideration margin requirements and leverage. High leverage will
help traders having little money to earn substantial profits. At the
same time it increases both potential profit and potential loss. So
think twice before making decision. If you are a beginner you should
consider Forex brokers who offer Demo Account. It will give you a
chance to improve your trading skills and test you trading techniques
under the real market conditions in real time but with virtual money.
traders prefer to start with Mini Accounts that allow revealing all the
weak points of strategy loosing little money. Comparing a Demo Account
and a Mini Account we should note that a trader who has a Mini Account
risks little but REAL money while in case of Demo a psychological
aspect is not important and there is no slippage.
Different Forex brokers use different trading platforms. Forex
trading platforms usually feature real-time Forex charts, technical
analysis tools, and real-time economic news. MetaTrader is the most
poplar platform and many Forex brokers offer it to their clients.
not forget about the ways you are going to transfer money. Nowadays
Forex brokers use a large variety of payment methods: credit cards,
bank wire, check and different e-wallets: PayPal, WebMoney,
Moneybooker, E-gold etc. Think about criteria that are the most
important for you and look at our database to choose right Forex broker
that meets all your requirements.