Filed under Forex Brokers
When it comes to Forex Broker Selection, I must say that it is a very personal issue. There are some people who are extremely happy with a certain broker but there are also a group of people who simply hate the same broker. This usually occur because different people will have different requirements.
Although Forex Broker Selection is a complex decision, it is definitely worth the while because it can make or break your forex day trading career. As there are over 100 different Forex Brokers available in the market, you need to know the things to consider when selecting one for yourself.
Here are some of the factors you must take into consideration when selection your Forex Broker:
1) Charting Interface – I must say that a good charting interface should be your key consideration when selection Forex Broker. This is because without a good graphic representation of the price, it is very frustrating to look at the chart. Beside graphical representation, you must look at the Forex Technical Analysis tools available in the charting interface. Before you sign up for any Forex Broker, you must know whether those Forex Indicators you need are provided or not.
2) Reputation – Having a good and reputable Forex Broker is like buying insurance for your trading career. Imagine you growing your account to hugh amount and then having the broker bankrupt and closed down. You will lose every single cents you have accumulated through your hard work. one way you can verify the reputation of the Forex Broker is through checking if the broker is regulated or not and where it is regulated. There are some brokers who claimed to be self regulated and this usually means that they are not regulated but do not want to admit it.
3) Start Up Capital – Not everyone of us can come up with 100K to set up an account. Therefore it is very important for you to check the minimum requirement to set up an account. There are some Forex Broker who allows you to start an account with $25.
4) Metatrader – If you are those who are going into metatrader or automated forex trading, you need to check if your Forex Broker allows you to do so. There are some brokers who totally banned the use of automated forex trading software.
5) Withdrawal of Profit – There are some Forex Broker who charged high fee when you are withdrawing your profit. If you are those who are withdrawing several thousands a month, this is not an issue but if you are those who are making small profits and simply draw several hundreds every time, this can prove to be quite a burden to your account.
6) Spread – The difference between the buy and sell price gives you the spread that your Forex Broker is charging you. The small the spread, the more profit you can get.
7) Currency Pairs – There are some small brokers who only have a few currency pairs for you to trade. Therefore it is very important for you to find those Forex Broker that have the currency pairs you are interested in.
I hope that these 7 Forex Broker Selection Guidelines are useful for you.