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Factors to Consider in Choosing a Forex Broker

With too much number of forex brokers now available online, we can choose a broker that could help us start on forex. We can even choose a broker that would be compatible with our trading style.

There are few important points that we should consider on choosing a broker.

Currency Pair - We should check if the currency pair we like to trade was available to our target broker especially when we are not trading the major currency pairs. While some have few currencies, others even have so many pairs.
Trading Platform - What you prefer, a downloadable forex trading platform like metatrader, a web-based trading platform, or mobile applications? If you trade the markets from home or some other location, then you can install a trading platform like metatrader. If you can't install software where you will be trading from, then look for a broker with a web-based forex trading platform, but if you have an installed mobile application then there will be no problem trading wherever you are.

Spreads - If Its a market maker, compare their spreads to others brokers because wide range of spreads are happening when there is a high impact news.

Commission - Most of the brokers now doesn't ask for commission because they get their profit on spreads.

PAMM Accounts - If you are busy and doesn't have enough time and knowledge, you may want to join pamm account to share the profit made by a good trader.

Demo Account - Broker shall provide a demo account for testing strategy. A demo account that provides trading history that can be viewed by others.

Leverage - Those who offer a lower leverage have a higher margin requirements, making you open a small position thus small profits. Leverage usually range from 1:1 to 1:1000

Regulated - Regulating body can help the traders on raising complains to the forex brokers. Most of the scam brokers are not regulated.

Minimum Account Opening - Some brokers offers a small amount as little as $1 while others want a minimum deposit of $250~$2000.

Current Promotion - There are too much promotions nowadays to attract customers, others are offering Different Forex Bonus like No Deposit Bonus, and 30~100% Forex deposit bonus. Some even have sponsored a Paid to post on their forum. Promotions greatly adds to our initial capital.

Brokers Preference - There are brokers who are good on day trading while others are good for long term. Some brokers doesn't accept scalper, and it will be a problem for those who open a trade and close it immediately after getting little profit.

If you are ready to trade and have enough money, try to open a small account with different brokers to compare them. Observe the slippage because sometimes when you close a trade at a certain profit, it will be lower due to slippage.

Lastly, Look for their About Pages, office address and contact numbers. Be sure that they are reputable broker so you can sleep well at night without worrying about the safety of your account.

 Goodluck & Happy Trading!
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