7 Basics For Finding An Online Forex Broker To Blow Up Your Forex Profits


One of the essential components you must have when starting to trade forex online is an account with a forex broker.

One of the essential components you must have when starting to trade forex online is an account with a forex broker. A currency trading broker is your connection to the markets and will provide the primary cover that allows you to trade with margins.

The question is how to choose the best forex broker. There are at least 7 points criteria to consider when deciding the best place to shop from a forex broker.

1. Reliable

This works on multiple levels. You need a broker that you can count on to be trustworthy and not to disappear suddenly like a puff of smoke from the internet taking with them all of your hard-earned money. The Forex market is surprisingly free of regulations, so there are a plethora of forex brokers to choose from and as with many things in life, some forex trading brokers are more honest than others.

The first step is to verify the reliability of the currency trading broker and make sure your online forex broker is regulated. In the US, this means you want a forex broker with current registration with the Commodity Futures Trading Commission (CFTC) as well as the National Futures Association (NFA).

Check for a forex broker who has a flawless record of any complaints filed against him on the National Futures Association website. Other countries have their own regulatory bodies, for example, the UK Financial Services Authority performs the same function.

Another consideration is whether or not the online forex broker trading platform is reliable. The forex trading platform is the financial software that will connect you to the forex markets whenever you want to trade. If the online forex trading platform is often offline, this will lead to some major problems. For example, you may miss an opening or closing a position at the optimum time.

It would be best to check out a number of online forex trading forums for feedback from individual users regarding the amount of downtime they have been through. Remember that as with all online forums they do not listen to the loudest as they may have a vested interest in either case in recommending or not recommending who they think are the best forex brokers.

2. Services provided by the best Forex brokers

The Forex markets are traded for a full 24 hours every day from Sunday evening through Friday afternoon Eastern Time. Ensure that you have access to your forex broker trading platform during all these times, the best forex brokers trading platforms will be available and they will also provide 24/7 customer support on forex trading days.

Make sure it covers seven major currencies namely the US dollar, the Japanese yen, the Canadian dollar, the Australian dollar, the Swiss franc, the euro, and the British pound surely the best forex brokers will do.

The best Forex brokers will offer you the following minimum essential tools, which are the instant execution of your Forex trading at the quoted price, technical analysis charts, and financial trading charts. Most of them will also offer a training program to teach the basics of using the tools.

3. Forex broker costs

Online Forex brokers do not charge their clients a commission, so the way they generate their income is one of the differences in the spread of forex trading. Forex spread is the difference between the buy and sell prices of any of the currency pairs. The forex trading spread is usually any difference between 1 pip and sometimes less to about 3 pips; This will depend on the terms of service of the online forex brokers and the currency pair being traded.

The slice of pie that the spread takes can make a huge difference between making a profit or a loss on your forex trading account. This will affect both the immediate term as well as the long term, so you will need to closely scrutinize at which level the spread will be calculated. If you can determine which pairs you are likely to trade most often, then the spread of those pairs will be more important to you than others. For example, the best trade pair is the US dollar / British pound, which is known as cable.

Beware of special short-term marketing maneuvers like special offers for low spreads in forex trading that may not last long once you stick with your money.

You should consider the minimum amount of capital that you can invest in order to open a Forex trading account. A good tip for new traders is to start small, which means looking for a Forex broker that allows you to open an account with a minimum of $ 250 or less.


4. Margins, which are also known as deposits

Margins are a variable that changes from a Forex Broker to a Forex Broker. Lower margin requirements mean higher leverage, and higher leverage can give you the ability to make larger profits or losses from a fund of the same size. The margins allow you to amplify the opportunity to make more money

5. Trade volume, also known as lot size

Volume varies from broker to broker. In general, 100,000 trading units of currency are a standard lot, 10,000 trading units are a mini lot, and 1,000 trading units are a small lot. Some brokers offer many fractions as well, giving you more power to determine your lot size. This might be perceived as a bonus or just an added complication depending on your point of view.

There are other things to consider which include the interest paid on a forex margin account, the rollover fee when trading continues into the next trading day and any other forex trading policies the broker may have that may affect the trading of your forex trading account. These are the main points you should look for when choosing the best forex broker.

6. Customer service

This is very important especially when you are just starting to use a Forex trading platform. As with all new things, there will inevitably be problems with teething and you will want to be able to speak or email someone and get an immediate response. The best forex brokers will offer this service.

7. Forex exit strategy

There will be a time when you want to make some profit and be able to withdraw your money quickly and easily. Make sure you can get your money within 2 days as some online forex brokers insist a 14 days delay which is totally unnecessary.