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When you’re going to place your hard earned money in somebody’s hands, you need to be very selective. Not only they have to provide the best service, but you also have to make sure that they won’t scam you or anything like that. The same considerations applied when you need to select a forex broker to put your money. What you should do now is making a forex broker comparison, so go ahead and look for some potential candidates. See these points in your forex broker candidates and see who provides the most beneficial services: Look into their leverage Bigger leverage indicates bigger opportunity to make more profits, but it also indicates greater risk when your analysis goes wrong. Leverage is definitely an important element, but don’t opt for a broker simply because they provide bigger leverage compared to the others. For me, 1:200 leverage is sufficient. Several foreign exchange brokers even offer as much as 1:400. Well, it’s your call. Just make sure to do a basic calculation before you take a position and place your stop loss accordingly to avert being wasted by the market movement. See their spreads If your main strategy is long term trading, another 1 or 2 pips in spread probably means next to nothing to you, but if you’re a day trader or even a scalper, it becomes a huge concern. Depending on their spreads, fx brokers can be divided in 2 categories: - Fixed spread; this type of broker uses fixed spread and gain profits through that. - Floating spread; this type of brokerage provide you with real spread (which always changing) and charge commissions for each of your trade. Floating spread might looks lower, but it isn’t always more profitable. Open a practice account and test them out yourself. How often do you have spread that less than the standard fixed spread? Does the floating spread worth the commissions? Test their trading platform Trading platform is a strong reason to decide on a broker and dump the other. A few trading platforms are more dependable and more sophisticated than the others.In such cases, you should put in priority on fx brokers that offer such trading platforms. It's impossible to know before you try them, so I suggest you open up a demo account and test a lot of them. I would suggest the popular MT(MetaTrader) as my first choice, but a few broker’s trading platforms can be very convenience to use. Minimal deposit Although I don’t believe that $25 can get you anywhere in currency trading, a few people may have different opinions. They may think it is great for practice or training purpose where you have got real money at risk. This way, you can learn a bit about trading psychology and stay calm when the market goes on the wrong way. Certainly, you probably won't be as calm if it was $1,000 on the line, but it’s an excellent start anyway. There are many aspects in comparing forex brokers, but I think these 4 are the biggest concern. The goal here is having a broker that can provide your all trading needs. That way, it'll be easier to trade and making profits. One more important thing: don't forget to check their credibility; you don't want to place your money in the hand of someone who will scam you. Find out more about currency trading broker and how to identify a scam broker in forex broker with online service. Also, check out my prime broker recommendation in best forex brokers.
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