How To Make A Comparison Of Forex Brokers?

Finding a good Forex broker is a feat in itself

. The task can be dreary, but researching various brokers and researching the one you may be thinking of opening a trading account with is an investment of time that you will not regret. There are various ways to judge and compare forex brokers, heres taking a look at them one by one.

Low spreads

The difference between the bid and the price asked is known as spread and it is measured in terms of pips. There is no central exchange body in forex so the spreads can be differently offered by different brokers. Some forex brokers offer variable spreads while some offer static spreads. Spreads are better to be judged from their static values and the broker that offers lower spreads is better.

Speed and efficiency of execution

One can compare brokers by measuring how much time it takes for them to execute a trade order. Some brokers offer automatic execution of trades as well .Other execution parameters can include how much does a trader have to trade before having to request a quote and whether or not they allow for trades amongst their clients and against their clients.

Flexibility of leverage margins

Leverage can be defined as the ratio of the total capital available for trade to your actual capital. Leverage becomes a necessity in forex as price deviations of currency values are expressed as fractions of one cent. A good broker will offer you a flexible margin for leverage which gives you the freedom to trade as little or as much as you want.

Types of accounts offered

The brokerage company must offer you the option of mini trading accounts for people who have limited capital investment. A broker offering low trading and account opening amounts to its client shows that it wants serious traders who want to learn forex trading by starting out small and not gamblers who are looking to make the jackpot.

Trading Platform offered

The platform provided by the broker should suit the needs of your trading system and should have an easy to understand interface. A good platform will show you actual live quotes instead of indicative figures, offer you limit and stop loss orders; one-cancel-one orders etc.

Dealing tools and value-added services

Indicators and tools that help you make informed decisions in forex trading. Try out the demo feature and test and compare tools.

Support offered

Your broker should offer you 24 hours support and support on a telephonic platform to make trades on in case of computer or internet crashes.

Get referrals

The best way is to read forex forums that compare and offer feedback and reviews on brokers. Get an idea of the other people who are using a broker and how their experience has been so far.

Compare forex brokers on different grounds and try their demo account versions before you make a final choice. Happy Broker Hunting!

by: ali bell

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