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Anyone who want to enter currency trading must realize that opening a currency trading account is not as easy as it may seems. Cheat brokerage and trading companies are in every street corner of the internet and if you don't come with good preparations, they will eat you alive. If somehow you can pass them and introduced to a real broker, I suggest you to check the broker features first to make sure that you get the most benefits from them. These are some factors that must be considered when you want to open a currency trading account: 1. Leverage Leverage means the usage of various financial instruments or borrowed capital, such as margin, to raise the potential return of an investment. In forex market, this means a loan that offered for investor by the broker that managing his forex account. Example: Leverage 200:1 where 1 standard lot is USD10,000. In other words, you will have to deposit USD10,000/200= USD50 in order to open 1 standard lot. Difference in leverage can means different profit opportunity, so make sure you have checked this factor. 2. Spreads Spread is the different between bids and ask price. Ask is the price when you buy while bid is the price when you sell. Different trading firms offer different spread and take compensation from it. Some other brokerages will charge commissions for each trade in addition from this spread. High spreads will make it more difficult to earn profits for each trade, so make sure you have check it thoroughly. 3. Currencies to Trade Almost all trading account can support major currency pairs such as EUR/USD or GBP/USD, but sometimes there are also opportunities in other currency pairs such as NZD/USD or GBP/CHF and you may want to try that. It is only a matter of taste; if you don’t find the other currency pairs appealing, then it doesn’t matter. 4. Good Customer Support You have to know that you're deal with a true company with actual person behind it so you should have direct contact means such as live chat or telephones. This is important to solve your problem as quickly as possible; sending email and waiting the response for days is not how a credible company works. 5. Software After you open a currency trading account, there are brokers that will give you the trading or analysis software as one of their features, some others won't. I’ll just go with the free ones. 6. Funding Option Usually, trading company accept deposit in many major ways such as wire transfer, credit cards, etc; but you should check it too just in case they don't support your preferred method. Make use of whatever that fit your preferences and convenience. 7. Have Practie Trading Account In a practice account, you can get access to the trading platforms and start practicing online trading. This demo account can also be used in other ways: - As a means to test your strategy/signals/robots. Since demo account also uses real market data, you can get accurate test results. -While using the practice account, you can see if the trading platform is easy to use or not. A few platforms tend to be more difficult to use than the others. 8. Support Many Languages This is particularly useful for anyone who doesn't speak English as their native tongue. Opening a currency trading account doesn’t has to be hard or complicated; just be sure that the account support all you need in forex trading. Discover the most preferred forex broker that can provide you with excellent trading account in top forex broker. Protect yourself by learning to identify a fake broker at online forex trading broker.
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