Forex Brokers - Choosing The Best Ones Some Simple Tips

By: Kelly Price
All forex brokers are not the same and there are huge differences between them that can mean the difference between success and failure. If you want to trade forex you need a broker and this article will point you in the right direction on finding one.

Understand their Role!

Under no circumstances take advice on trades from a broker. If brokers were good at trading they wouldn't be brokers. Sure many are great on the mechanics of trading but ideally you don't want to ever speak to them you should be placing orders through a trading platform

Lesson - Ignore broker assist accounts that charge high fees for extra advice and will probably cause you to lose.

The Cost of doing business

Forex trading is not free!

You read a lot about how they don't charge a commission but they do all have a spread between buying and selling - this mounts up and impacts on your profits and losses.



You should look for a broker that will charge you no more than 5 pip spreads and if you shop around you can get 2 - 3 pip spreads. Do not pay more than you need to - the cost of business mounts up and can be the difference between success and failure, depending on how often you trade.

Check them Out!

Bigger brokers are better than smaller ones so look for size and time in business i.e they are established and also look at their support services and make sure there available 24 hours a day.

Test The Trading Platform

Become familiar with the trading platform before trading for real. Most forex brokers will allow you to trust drive it with a demo account.

New Services

Today brokers are looking to attract more customers and make them comfortable with the risks of trading before they trade and a great idea we have seen is a protected account.

Quite simply it allows you to trade real money with limited risk even if you have a debit - after a fixed period normally two weeks the account is shut.

-You take any profits

-The broker covers any losses

These accounts are a great way to get "your feet wet" and allow you to experience the emotion of trading real money with a set risk - a great service to see if forex trading is for you.

Using a forex broker is essential when you trade and picking a good one is really common sense and if you follow the above tips, you will find one that is right for you.

Investment
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Investment
 



Share this article :
Click to see more related articles