You could try selecting a few online brokers and contact
their Internet help desks to see how quickly they respond
to enquiries and whether or not they answer questions
to your satisfaction. Keep in mind, however, that pre-sales
service may be better than after sales service. This can
be true for any online business, not just FOREX brokers.
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Customer satisfaction and safety
are just part of the story. You want to find a broker
who executes orders quickly and with minimum slippage.
All online brokers should offer automatic execution and
have clear policies regarding slippage. They should be
able to tell you how much slippage can be expected in
both normal and fast-moving markets.
Next you want to know the fees involved. What is the spread?
Is spread fixed or variable according to the type of account?
Are mini accounts subject to wider spreads? Are there
any other charges? Smaller spreads mean more profit for
the trader, but there may be a trade-off between spread
and service. Look at the overall picture before deciding
to go with a particular broker.
Margin accounts are the lifeblood of FOREX trading, so
be sure you understand the broker's margin terms before
setting up an account. You need to know the margin requirements
and how margin is calculated. Does margin change according
to the currency traded? Is it the same every day of the
week? Some brokers may offer different margins for mini
and standard accounts.
Trading software is very important for the online FOREX
trader. Get a feel for the options that are available
by trying out a demo account at a few online brokers.
Above all, you are looking for reliability and the ability
to perform well in fast-moving markets. The software
should offer automatic trading and may have special features
such as trailing stops and trading from the chart. Some
features may only be available at an extra cost, so be
sure you understand what your trading needs are and how
much the broker charges to provide them.
Other information to find out about includes the broker's
policy regarding minimum account balances, interest payments
on account balances, which currencies can be traded and
whether or not non-standard sized lots can be traded.
You should also find out whether clients' funds are insured
and the extent of that insurance.
Choosing
a Forex Broker
With currency trading becoming ever more popular, the
number of brokers is growing at a rapid rate. What should
one look at when deciding which broker to open an account
with? These are the important points to consider.
Spread
Because currencies, unlike futures and stocks, are not
traded through a central exchange, the spread can be different
depending on the broker you use, so it's well worth checking
a few out before you open an account. Most forex brokers
publish live or delayed prices on their websites so you
can compare spreads, but check if the spread is fixed
or variable. A fixed spread means exactly that — it will
always be the same no matter what time of day or night
it is. Some brokers use a variable spread, which might
appear to be nice and small when the market is quiet,
but when things get busy they can widen the spread which
means the market must move more in your favor before you
start to make a profit. Fixed spreads are generally slightly
wider than the variable spreads are when at their narrowest,
but over the long term fixed can be safer.
Execution
Some brokers will show live prices on their trading platform,
but will they honor them when it comes to pushing the
Buy or Sell button? The best way to find out is to open
a demo account and give them a test drive. This will also
give you the opportunity to see what the speed of execution
is like — when you want to buy, you want to buy now, not
sit around waiting for ten minutes whilst your order is
confirmed!
Trading Platform
Good trading software will show live prices that you can
actually trade at, not just indicative quotes. It will
offer Limit and Stop orders, and ideally will let you
attach these to your entry order. One-Cancels-Other orders
are another useful feature — they mean you can set up
your trade and then leave the software to get on with
it. And the most important feature of all — can you actually
understand the platform? Having all the bells and whistles
is of no use if you can't use them, so again, get a demo
account and give it a go.
Support
Forex is a 24 hour market, so your broker should offer
24 hour support. You might not be trading at 3am, but
that could be what time it is in your brokers head office
on the other side of the planet, so make sure there will
be somebody there to pick up the phone if things go wrong.
You should also check if you can close positions over
the phone — essential in case your PC or internet connection
crash at a critical moment.
Backing
Finally, before opening an account do a little homework
and find out about the company. Forex brokers are regulated,
but that doesn't mean they all have equal backing. If
the market collapses, you want to know that they've got
the reserves to cope with it and will still be around
when you decide to withdraw your cash. If a broker is
elusive when it comes to questions about their parentage
and financial backing, then steer clear.
In Conclusion
Choosing a forex broker isn't difficult, but don't rush
the decision. Check out a few, and always get a demo account
first to make sure you're happy with the way everything
works before sending off your opening balance.
Forex
Trading Platform - choosing the best
When it comes to forex trading the forex software you
choose is essential. There are so many forex trading companies
all competing for your business that choosing the right
forex software can be quite a difficult task. Most of
the forex software products available offers live online
forex trading platforms but what other components are
vital when it comes to your forex software.
Key Elements For Your Forex Software
Before purchasing any forex software there are a few essential
items that should be included. The most important is security
and your online forex trading software should include
a 128 bit SSL encryption which will prevent hackers from
accessing any of your personal details and information
such as your account balance, transaction history, etc.
Providing the best security for your forex trading will
include a company that provides 24 hour technical server
support for your forex software, 24 hour maintenance should
anything go wrong, daily backups of all information, and
a security system that has been designed to prevent any
unauthorized access.
Along with these security protocols there are also some
forex trading companies that use smart cards and fingerprint
scanners to ensure that only their employees can have
access to their servers.
Another important factor when it comes to choosing your
forex software is to check what the company's downtime
is like. When it comes to trading forex and particularly
your online forex trading you need to ensure that the
forex software you choose is reliable and available 24
hours a day. The forex software you choose for your forex
trading should also have technical support available at
all times should your session be cut short.
Ensuring that all the above features are listed in the
forex software you choose will help to ensure your forex
trading success. Anyway, a forex software is a must have
if you want to earn money.
