Choosing The Right Forex Broker

Anyone wishing to start trading Forex online must do so by opening an account with a trustworthy broker. For new traders, the most popular and logical choice is a mini Forex trading account.

The question is what should you look out for when deciding where to deposit your cash?

Firstly, it is important to find a professional and reputable broker.

Unfortunately there are some platforms out there which are anything but professional and you should be wary of any that look like they have been cobbled together by anyone other than a professional organization.

Secondly, you need to decide the minimum amount you want to deposit. A mini account minimum deposit can range from anything from $50 right up to $250.

A low $50 deposit is a great way for you to start trading and learn the ropes. If you have more cash available then you might want to consider a Pro Account which usually offers better features for around a $1,000 deposit. Click here to see which brokers I recommend.

Flexible Forex trading = Profitable Forex Trading

Related to the payment is what forms of depositing is accepted. Avoid those that can only offer you bank transfers or check depositing, you can easily miss out on that profitable trade you have been waiting for simply because your money hasn't cleared. Instead look for a broker that can offer you credit card depositing in an instant for ultimate speed and convenience.

Another key consideration is the type of software the broker offers. The two main ways you can trade online is either via a platform which you download and host on your own computer. This software communicates with the broker when you are connected to the Internet to bring you all the latest buy and sell prices.

The other method of trading is through an online based system where you visit your broker and log-in to their online system. This avoids the lengthy download times and means you can trade in an instant.

Both methods have their advantages and disadvantages although personally I prefer web-based platforms that require no downloading of software.

This is simply because it means you can log in to your trading account no matter where you are in the world and no matter what computer you are using, as long as you have an Internet connection you can trade. A downloaded software can only be traded from the machine upon which the software is installed.

Look for Competitive Pip Spreads and Leverage

Something else you should look at are the spreads charged by brokers. Around 3-5 pips is normal for a mini account but some brokers will increase their pips much higher when major economic news is released.

This is so that they can reap the profits from the increased trading activity. Look for a broker that offers guaranteed fixed spreads to avoid paying through the teeth.

Leverage should also be a consideration of yours. Some brokers will only offer leverages of 50:1 on their mini accounts whereas others will offer as much as 200:1. You should consider the higher the leverage the better and the more chance of bigger profits.

Customer support should also be a main concern when you are choosing which Forex broker to use. Because of the technical nature of Forex trading it is vitally important to choose a broker with trained 24/7 customer support.

One final thing a new trader should read up on before opening an account with a broker is what measures they have in place to stop you losing more money than you can afford to. Some will offer a stop-loss function so you automatically exit a trade at a certian point should things go wrong.

Limit Your Losses and Maximize Your Forex Profits

Some brokers such as ForexYard also offer a no debit guarantee, this means you will never be faced with a negative balance to pay back. If your account ever reaches zero you positions will automatically close so that you are never faced with a bill to pay back a debt. This is an incredibly important feature for the new trader.

Now you know what to look out for with brokers we will take you to our Forex broker reviews on the next page. We have tried some of the top brokers out there and we present our findings along with our recommended broker fo you to use.