February 10, 2014

Choosing the Right Australian Forex Brokers

Australian forex brokers

Irrespective of whether you are a beginner or experienced trader, choosing the right Australian forex brokers is important for success in the largest financial trading market of the world. When you choose the right broker, you may be able to earn more profits from the trades you place in this volatile market.

Although there are hundreds of local and foreign brokers offering their services to traders in Australia, you need to make the choice as per your specific needs and requirements. You need to understand that there are many fraudulent brokers too who offer their services to traders and if you are not careful you may lose your valuable time and money.

Guide to choosing the right Australian forex brokers

Reliability and reputation are of utmost importance when you choose Australian forex brokers and it is important that you focus on them. All brokers wishing to offer their services to traders in Australia need to be licensed and regulated by the Australian Securities and Investments Commission (ASIC). You need to ensure that the broker of your choice is licensed by ASIC.

Brokers do not charge commission and make their money from spreads. Spreads are the difference between the price at which a pair of currency is purchased and sold at a given period. You may be able to save money when you get low spreads. It is advisable to choose brokers who offer the most competitive spreads so that you are able to minimise costs and maximise profits.

You need to ensure that the broker of your choice offers different trading tools so that you are able to analyse the market and take important investment decisions easily. The trading tools that are a popular choice of traders include economic calendars and other tools used for technical and fundamental analysis. Apart from trading tools, you should also be able to get real time price information so that you can time your trade in an effective manner.

Leverage is important for earning big money with small accounts and brokers offer different types of leverages to traders. Although leverage can be used to earn big, you need to keep in mind that when you increase the leverage you are also increasing the risks of trading in this market. It is best to look at the different options and make the choice depending on your risk tolerance level. You need to make sure that the broker has the right type of trading accounts as per your individual knowledge and experience. Standard, mini and micro are the popular account types offered by brokers.

Customer service provided by Australian forex brokers

Most traders do not pay attention to customer service offered by Australian forex brokers and this is a big mistake. As the foreign exchange market is open all through the day and night for trading, you may require support whenever you place a trade. You need to choose a broker who may be able to offer you service round the clock so that you do not face any difficulty in placing a trade.



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