7 Ways to Compare Forex Brokers
The foreign exchange market is a competitive one; you are not battling against others, but against price action. There are a lot of things that need to be taken into consideration when trading, but before you start, you need to compare Forex Brokers to ensure that you are one step ahead.
There are lots of fundamental factors that need to be taken into consideration, and here are my top 7.
Where they are located
Whilst it might not seem relevant, company information is extremely important. Do not simply choose a company because they offer the best spread, as you are asking for trouble.
Offshore companies are here, there and everywhere, but clients will find it hard to withdraw their profits.
Rules and regulations
Not everyone knows this; each company should be regulated by the appropriate body in their country, so when you compare Forex Brokers, take this into consideration. For example, the FSA is in the UK and the FCM is the regulator in the USA.
Types of account
There are hundreds of different accounts out there, so make sure you pick the right one for you. There are micro accounts starting from $10, mini accounts from $300, standard accounts from $2,000 and of course, there are corporate accounts.
Amount of Leverage
Leverage is the ratio that is risked in comparison to cash held. A lot of places will offer anything from 100:1 right through to 400:1. This means that you can risk $400 for every $1 in a 400:1 account.
Size of spread
When you come to compare Forex Brokers, always look at the spread size. The size of the spread is essentially your cost, so the higher it is, the more it will dip into your profits.
Different types of Trading Platforms
The software used by a broker is essentially the trading platform. Each trading platform will offer a range of different features, so get to know a few different pieces of software to determine what features you really want a need to become successful.
Broker Support
The foreign exchange market does not operate on weekends, but 24 hours a day, 5 days a week.
When you look to compare Forex Brokers take into account the quality of their support team and the methods of support. A lot of brokers offer different methods of support such as telephone, email and even fax.
Find out how to Learn how to Compare Forex Brokers! http://www.forex-market-trading.info
