Choosing a broker is an important task before you actually start your trading in forex market. This has become a critical task at present since the online world witness an increase in number of scammers. Similarly online forex trading concept is no exception and scam sites exist here too. Thus before you start with trading in forex, consider the factors discussed in this article.
Background check has been made easy for checking with any forex broker due to the existence of Background Affiliation Status Information Centre (BASIC). National Futures Association (NFA) provides the necessary information which any forex brokerage firm submits upon registration. Investors are free to contact the information centre of NFA regarding query about registration details.
Customer support must be a main consideration before choosing your broker. Make checklist of at least two features- live chat and the telephone support. Any problem with your account either technically or formalities should not affect your trading at nerve points. So you must ensure choosing broker who respond timely and effective to make efficient trading throughout.
Check out for a good screen layout in the interface which the platform specific to broker provides. Check its compatibility with your system while performing different functions. The interface should be simple and neat to eliminate mess-ups while carrying out trades. Prefer safe software which do resists viruses and other malicious codes. Execution of order must be instant so that w can trade what we see. Updating of live prices should not be a problem and must be instant.
The features of the account you chose is a major criterion to look after. The account must be checked for the number of available currency pairs. All the seven major currencies -American dollars, Great Britain pound, Japanese yen, Canadian dollar, Australian dollar, and Swiss franc must be available for trading. Transactions costs must be lower to maximise profits upon trades. Initial deposit should be your other major consideration and lower initial deposit is preferable. It is very important since your trading hours may favour specific currency pairs only
Lower the pips, higher the profit per trade. High leverage is much preferred so that you can make many profits when you are able to predict market movement with good accuracy. Minimum size of trading must be low. You must see to it that one lot what the broker offers should contain the least units compared to others. For low potential investor, this should be in the main checklist. Availability of demo account should be there; thereby you can check all factors yourself.
Spreads or the difference between buy and sell price must be minimal or zero. Lower the spread, higher the profit per each units in trade. Free analysis reports must be provided and enough guidance statements must be given. The broker should be ready to help out in educating yourself. Free chartings must be offered in order to analyse trends by self.
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