How To Find The Best Forex Brokers

Posted by admin 28/10/2013 Comments are off 899 views

Finding Forex Brokers

This article looks at the characteristics of the best forex brokers available on the forex market.

Finding the best forex brokers on the foreign exchange market is more difficult than it sounds.  It is important you know exactly what trading requirements you have and what the brokers can offer you.  You must also be aware of what defines a good forex broker, as well as what defines a bad one.  This is essential as the broker you work with can affect your trading immensely.

The forex trading platform

The online trading platform is how most retail traders connect to the forex market.  Each broker will have their own trading platform that can be used as long as you have an account with them.  Before opening an account, there are certain questions you should ask regarding the trading platform.

  • How easy is it to use?  To determine ease of use you need to trial the platform through a demo account.  You should be able to easily find all the parts you need and be able to trade efficiently.  You should complete a number of different trades to verify that you can and that it is easy to do.
  • Does the platform have live streaming?  The best way to trade forex is on a platform with live streaming.  This means that you get the most accurate information about what you are about to trade.
  • What additional features can you get?  Some platforms are very basic and simply give you the quote for the pairs.  Other platforms have more information from charts to news that will affect the market.  Seeing what the platform offers can help you determine whether it is best for you.

Forex brokers and the spreads

Forex brokers do not receive a commission on successful trades but rather make their money of the trade spreads.  You have to see what kind of spread you are being offered and whether you can get a better rate elsewhere.  When looking at this you should take into account the overall state of the market.  When the market is good the spread will be better for you, but when the market is bad the spread will be disadvantageous.

Forex brokers and client support

As the forex market is open all the time you should be able to get support from your forex broker at all times.  You should also consider the type of support they offer.  Are you going to have to raise a service ticket or do they have an instant chat facility?  You should also test the support system they have in place before you begin trading live with them.

Trading accounts and the fees

Many forex brokers offer free accounts where you never have to pay fees other than the capital balance.  However, there are other brokers that do have a fee either for opening the account or for the continued use of the account.  You need to consider what you are getting for your money and if this actually makes it worth the price.  It is possible that the free accounts can offer the same service.

 

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