Choosing a Forex Broker
One of the most important decisions that you will make when entering into the foreign exchange market is what broker to choose. There are many forex brokers that are available today and almost all of them make great claims that they want you to believe and trade with them. So most ask the question, “how do I know which one to choose?”
This is where we at Forex Trading Software come in. We will certainly not tell you who to choose since there are some brokers that are better for some people and not as good for others. We will, however, try to help you understand what to look for and what to stay away from.
One of the first things that you will want to look for is what they are offering in terms of a first-time deposit bonus. The forex deposit bonus is the main bonus for traders. Most brokers will offer up to $1000, some a little more and others a little less. It is almost always a good thing to find a broker who will offer a good bonus because all they are really doing is helping you out. Read more about forex deposit bonus.
Forex Broker Demo Account
Another option that you want to look for is whether or not the broker offers you a free demo account. Usually, they will be somewhere between $50,000 to $100,000 but really any demo account will work.
Having the option of a practice account is so important because most platforms are different from one another and it is vital to be able to get used to their platform and how it works before you start using your own money. If they are not allowing you to practice on their platform then it is probably for a reason that they don’t want you to know until you have already deposited your own money.
As a forex trader, you don’t pay your broker any dime for their administrations since they are repaid through Spreads when you start to exchange. Spreads are gathered amid exchanging by your broker whether you’re in misfortune or benefit. Spreads could be as high as 10pips or even as low as 1-2pips relying upon the specialist. In this way, it’s important to check if your specialist is one that works colossal Spreads on their clients’ records. In a perfect world, Spreads of 2pips and beneath ought to be utilized by an ideal forex specialist.
Simplicity of the Trading Platform
Most of the brokers out there are very entangled cushioned with different instruments of exchange. This frequently leaves the novice befuddled in light of the fact that he doesn’t have a clue where and how to begin off. It is encouraged to pick agents with a basic exchanging stage so as to make execution of requests simple, fast and flawless. This is the reason I have composed an audit concerning how to pick a forex broker with a straightforward trading platform.
One other thing that we recommend that you keep your eye out for is what kind of leverage they are offering to you. For first-time traders, it may sound good to have a broker offering a 500:1 leverage ratio but be careful about using a broker with such high leverage. Remember, the higher the ratio is, the more you can make on your trades. However, don’t forget this means you can lose much quicker too.
From our experiences, we would recommend finding a broker with a leverage ratio anywhere from 100:1 to 400:1 at the very highest. The most trusted broker will offer somewhere between 200:1 and 300:1. This is where most traders will like to stay because they still earn quickly without being hurt too badly.