subject: Some Tips To Select a Superb FOREX Broker [print this page] Some Tips To Select a Superb FOREX Broker
Following are some of the pointers you need to bear in mind while selecting a forex broker.
Well, first and foremost you have to keep an eye out for a broker that offers fixed spread. Basically spread is the difference between the selling and purchasing of a currency at a specific time period. Normally the spread offered by various brokers vary widely from fixed to variable spread. Some brokers vary the spread according to day and night time while others change it according to the activity of market, if the market is going slow, the spread will be small and if it's active, the spread will be higher.
You need to ensure your broker is efficient enough to execute your trades at the proper time without any delay. See, if the broker provides you with automatic trade execution or not since that is pretty vital in FOREX trading. Plus also get the amount clear that you will be able to trade without asking for a quote. To evaluate these things and others, you can always sign up for a demo account at the broker site.
You need to evaluate the leverage the broker provides you to see if that is the one you need or not. Leverage is basically the ratio between the total amount available for trading and the amount you are investing. It is inevitable for FOREX trading and good brokers normally offer flexible margins so that you could select the leverage that suits you.
Make sure the broker you choose offers a mini account because it is the best option for the newbie traders who don't want to invest much. With mini account you can start trading having as minimal amount as $300 and sometimes even lower than that.
It should provide you with effective trading software that does not only display the quotes but in fact the live rates to help you in trading efficaciously. It should provide you the option of Limit and Stop orders so that you could trade without any hassle.
You need to select a FOREX broker that provides you with the necessary info and the resources to assist you in taking right decisions while doing FOREX trading. Make sure the broker gives you access to the analyses, news, charts, live rates etc. You can always go for those brokers who are more than willing to allow you to test their system before choosing them.
A good FOREX broker needs to provide you with 24 hour assistance, since FOREX trading is a 24 hour investment market. The broker should let you know the phone details as well. In case your internet somehow faces a trouble, you could at least contact them via phone.
The simplest way to get hold of a credible FOREX broker is to ask for recommendations. You can consult your friends, colleagues or relatives to ask which forex broker they trust.
