How to choose FX broker

Looking the following aspects:


  • Low Minimum Account Opening and Trading Amounts
    You should only trade with as much as you can afford to lose. Using a broker with low trading and account opening amounts, means that traders can trade at a level they are comfortable with. Many experienced traders learned with smaller amounts and built their way up gradually

  • Low spreads
    The spread is the difference between the bid and the ask price. The lower the spread the cheaper the trading is.

  • Instant Execution Of Orders
    It is very important that a trader does not settle for a broker that re-quotes when they try to buy or sell. This slippage can have a significant effect. Often this comes down to the liquidity a broker can provide, which is often indicated by the volume of trading that is going through them.

  • The Opportunity for Good Education and Training
    If you are new to Forex, you cannot form a real trading strategy without a full understanding of the fundamental and technical aspects of the industry. A good broker will offer the opportunity for this, as well as free professional charting and technical analysis tools.

  • Leverage
    leverage is effectively borrowing money to trade. For example if you used 10:1 leverage then you would trade with ten times as much money as you put down. If you used $1 from your account, you would actually trade with $10. This can be a double edged sword, because it means the profits and losses can be much greater and happen much more quickly. A good broker will give traders flexibility to trade with as much or as little leverage as they need.

Article Source: www.findyourfx.com

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