There are Eight Important aspects in choosing a forex Broker within the Market. It is not easy to find the perfect forex broker that meets all your needs, and trade preferences. What follows is a brief list of the most important factors you should consider before opening an account and begin active trading.
Broker Type:
Brokers, belonging to one of two categories - market makers (MMS) and to provide electronic communications network (ECN) trading. Market makers (MMS),for the most part, providing traders the means to go with and against the broker. MMS offers one of the bid/ ask price for the currency pair. The second group, an electronic communications network (ECN) brokers offer traders the opportunity to publish their own bid/ask prices. As a result, retailers often see a number of bid / ask prices rather than brokers, but a guy online merchants and cash. MMS to offer fixed spreads that vary from an average of 1 1 / 2 to 5 points. ECN platforms and demand spreads typically range 0-3 points. Although a small number of MMS to charge a service fee, most do not. ECN brokers charge a nominal service fee ranges from $ 4 to turn over $ 10 ($ 2, $ 5 / 2) at Lot standards. Only one of ECN brokers, we are aware holds a mini trade and traders pay a service charge of $ 1 per mini lot to turn around. Among the 154 brokerage activities to choose only three currently offer trading ECN. In some environments, also known as non-ECN broker dealers.
Minimum of Deposit initial is from $200 to $ 7500.
The Minimum size:
For site operators retail vary minimum lot sizes ranging from a low of 1000 (Mico mini) for up to 100 000 (standard lot). Most new traders trade with mini (10,000) lots. The minimum margin required margin, the amount you must have on deposit to cover a call on a given trade, ranging from 1 / 4% to 2%. Gearing: brokers offer all the influence of 50:1 to 400:1. Generally, the higher the requirement for initial deposit, the higher the leverage offered. Brokers who offer 400:1 leverage call for traders wishing to take more risks. 50:1 Those with a tendency to turn to conservative trader.
Hosting Trading Style:
Like all riders to assume a degree of market trading risk in return for the operations of their clients, who have a need to control their risk exposure. As a result, most place restrictions on trade in order to limit their exposure. Most of the runners are set a limit on the size of the transaction or require companies to be open for a minimum period of time. As for the restriction of the latter, we know that one reseller’s hosting - implementation of short-term transactions by persons seeking to use arbitration to take small profits on many trades.
The Negative of account balance rule.
The Negative of account balance rule.
If your risk is limited to the funds you have deposited or is it almost unlimited? The broker has introduced an automated system to protect against the loss of more money than you have on deposit? If your account may go into a negative balance, how long you have to pay additional funds to your open positions are liquidated? Although these problems could be solved by a phone call, you are advised to examine the trade broker. This agreement will eventually serve as source document and should clearly indicate the brokerage firm commitments to you and your obligations in cases where a problem and / or litigation.
The Service & amp; Support:
Does the broker has an 800-number or the ability of online support services, where you can get your problem solved quickly? When you contact their support staff are knowledgeable, patient, attentive and helpful? Crisis Management: In the unlikely event that you have open jobs and you lose access to the trading platform, you will have the assurance that your business can be closed manually. The broker provides means to cancel the transaction by phone?
The Personalization:
When all other factors are taken into account, the most important factor is the trading platform itself. What it offers all the features you are looking for? Is it easy or difficult? Accounting: Most brokers have a good back-office programs that combine business. Some do not. The only way to ensure your business records are accurate is to keep your own records and to reconcile with the report of the brokerage. Fidelity
The Bonds:
Traders are wise to do business with a broker who executes insurance against diversion. Even that coverage does not protect the operator of brokerage insolvency; it gives some protection against fraud.
The Demo Trading Account:
All brokers offer traders the opportunity to learn forex trading with a demo account. Unfortunately, while the demo accounts do not allow operators to practice their negotiation skills, become familiar with the platform of the corridor and perfect the mechanisms of exchange, trade show is not the same as the direct trade. As orders are demo account immediately, jobs and life are often delayed for two reasons. First, liquidity is not a problem when it comes to demo trade account - is unlimited. Second, no dealer or broker assumes a certain degree of risk. One thing is to assume that the order is executed, it is quite another to see how long it takes to process an order in the real world when you have to find a counterparty willing to take your business.
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