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9-Step Guide for Choosing a Forex Broker by Sharetipsinfo

For trading at the Forex market you need to an account with one Forex broker. Forex brokers basically execute the orders for selling and buying that are placed by the traders at the Forex market. So you can not trade at the Forex market if you do not register with a recognized Forex broker. So it is always wise to devote some time for choosing a Forex broker so that you do not face any difficulties while trading at the Forex market. Here we are providing a guideline for choosing the right Forex broker.

 

  1. Online Trading Platform – It is the most important aspect of choosing your broker. Though most of the Forex brokers offer online trading platform, not all of them are as good as they sound. You should look for trading platform that has the real time currency exchange quotes, account summery and details of the available margin. Sign up with the broker only if the trading Window of that broker gives you these minimum requirements. Of course if you get some other features that will be considered as added advantage but these three things are the basic requirements.

 

  1. Currency Pairs – Remember while selecting the Forex broker, you have to make sure that the broker offers maximum pair of currencies for trading. At least you have to ensure the most important seven major currencies in the world including USD, EUR, GBP, AUD, CAD, JPY and CHF. These are the most frequently traded currencies in the world and have the highest earning potential.

 

  1. Smaller accounts – There are some Forex brokers who offer small accounts for trading at the Forex market even with a minimum fund. So if you are starting as a novice at the Forex market these small accounts that are often referred as mini accounts and micro accounts will let you learn the basics of Forex trading without losing much.

 

  1. Customer Service – As Forex markets are open round the clock, you have to make sure that the broker has customer service facility 24×7. That will ensure that whenever you face any difficulty in trading at the Forex market, there is someone to help you out. Besides you should also check the efficiency and promptness of the customer so that your actual purpose is served when you need the support most.

 

  1. Cost of transaction – In Forex trading cost of transaction is calculated on the number of pips. The lower is the number of pips required for each trade; the greater will be the profit you will make as a trader. So you need to compare the pip spreads of different brokers to determine where you will get the least possible transaction cost while selecting the broker.

 

  1. Margin Requirements – Different Forex brokers have different margin requirements starting from 0.25%. The minimum is the margin requirement the greater is the chance of profit. So be realistic about your margin to ensure good return from Forex trading.

 

  1. Trading size Options – You can trade in the Forex market in different size of lots. Check with your broker about what is the type of lot that the firm is offering and what are the options available with the broker.

 

  1. Efficiency of the Broker – Your fortune at the Forex market will largely depend on efficiency and infrastructure of the Forex broker you choose to trade at the Forex market. So take a note of the reputation and experience of the firm before you actually register for the service.

 

  1. Margin Account Interest Rate – Forex brokers pay interest on your margin that is lying in your account and the rate of interest varies from one broker to the other. So get a good bargain at that interest after comparing different rates offered by the brokers.

 

These are some of the factors that should be taken into consideration while choosing your Forex brokers. There are so many firms that are offering Forex broking services. Each of them has different services and conditions and charge different fess for their services. So before you choose one to do Forex trading, you need to consider these aspects and compare the facilities and costs of different brokers. This will ensure that you can trade at Forex market with efficiency and make good profit from trading.

 

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