October 25, 2013
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Hundreds of Forex Brokers to Choose From

forex brokers

Since retail forex trading became possible, the popularity of the forex market has grown exponentially. There are now not only millions of forex traders but also hundreds of forex brokers. However, you still have to make sure that you find the right option for yourself. Consider the following.

Maximum Leverage

Leverage is used to increase your purchasing power in the forex market. The more leverage you use the more you can get out of your starting capital. The maximum leverage offered in the forex market is around 400 to 1. You should be careful about using maximum leverage with your forex brokers because its usage can also increase the size of your losses.

Typical Spreads

Spreads is the forex brokers’ way of getting their payment for providing you with their services. These tend to vary from one broker to another. You should look at two things while assessing brokers in terms of spreads. The first is the type of spread system they follow i.e. fixed, variable, and fractional and the other is the typical spread they give to their traders.

Minimum Deposits

While it is recommended to start with a decently sized account, if you want to start with a small amount then you should look into the minimum deposit that your shortlisted brokers accept. This could range from anything between 50 American dollars and 25, 000 American dollars.

Account Variety

You should also look into the type of accounts that the forex brokers are offering. Ideally, you should get as much variety as possible which includes demo accounts, nano accounts, micro accounts, mini accounts, and standard accounts.

Trading Platform

The quality of the trading platform can limit your efforts or amplify them. Thus, you should never choose forex brokers unless you have tested their trading platforms with the help of a demo account.

Range Of Orders

Whether you are using elaborate strategies or not, you should still look for those forex brokers that allow their traders to use various types of orders because as your knowledge progresses you would want to use more advanced strategies.

Charting Tools

Your success will depend on how well you can analyse and decipher market trends. This is impossible to do unless your forex brokers provide you with the right kind of charting and technical analysis tools. You should not only look for quality but also quantity when evaluating brokers on the basis of what kind of charting tools they provide.

Customer Service

While providing great service and great introductory offers is good, it is also the responsibility of forex brokers to ensure that their services stay exceptional for all their traders. This requires proper maintenance and an exceptional customer service department that is not only willing but also able to help their traders with their problems.

Size and Reputation

In simple terms, the best forex brokers would have the best reputation in the market and would most probably even be larger than most of their competitors in terms of turnover and market capitalisation.

 

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