| If you want to trade forex you need a forex | | | | good at trading they wouldn't be brokers, |
| broker and there are plenty around, here we | | | | ignore them and execute your own trading |
| will give some tips on picking the best for | | | | signals. |
| forex brokers and how to maximize your | | | | |
| potential with them. | | | | Useful EXTRA Services |
| | | | |
| Many traders see brokers as the enemy who | | | | Some brokers give extra services away that |
| lose them money but the fact is there neither | | | | are useful such as discounts on trading |
| your friend nor your enemy - their simply | | | | tools, books and newsletters which a lot of |
| there to transact your orders in an | | | | traders like - but there is one service we |
| efficient, cost effective and timely manner | | | | saw recently which is excellent for novice |
| and that's it. | | | | traders and it's called: |
| | | | |
| The most important points to consider when | | | | A PROTECTED ACCOUNT |
| dealing with a broker are the following: | | | | |
| | | | If you are new to forex trading, then you |
| 1. Competitive Spreads | | | | will probably try a demo account to get the |
| | | | feel of trading but useful as they are for |
| Pay no more than 5 pips on the majors and if | | | | learning the mechanics, they don't replicate |
| you shop around you can get 2 - 3. This is | | | | the feeling of dealing with real money. |
| your cost of doing business and needs to be | | | | |
| kept low. | | | | Many brokers to help get novices feet wet |
| | | | with limited risk offer Protected Accounts, |
| 2. A Reliable Trading Platform | | | | to act as a bridge between a demo account and |
| | | | a full trading account. |
| If you are trading online this is imperative | | | | |
| and most trading platforms today are | | | | They allow traders to trade with small |
| excellent - but make sure you test drive it, | | | | amounts of money and do as many trades as |
| for usability via a demo account to prove it | | | | they like in a set period (normally a couple |
| to yourself. | | | | of weeks) and the trader can still trade even |
| | | | if he is debit! |
| 3. Leverage | | | | |
| | | | At the end of the period the broker covers |
| Any broker today will give you more leverage | | | | the losses if any and the trader takes the |
| than you will ever need. 100:1 is fine - but | | | | profits. |
| many brokers will go up to 400:1. | | | | |
| | | | This means a trade as much as he wants - even |
| 4. Security OF Funds | | | | when he is debit on a set leverage and has a |
| | | | set risk in advance. |
| Look for well established brokers who use | | | | |
| segregated accounts have been in business for | | | | These accounts give the feel of forex trading |
| years rather than months. The longer they | | | | but have set risk and will show a forex |
| have been in business and and the bigger they | | | | trader his potential, before moving to a full |
| are the better. | | | | trading account. |
| | | | |
| What You do NOT Want From a Broker | | | | Finally .. |
| | | | |
| A lot of brokers sell higher fees based upon | | | | Getting the right forex broker is easy and |
| the service they give you in terms of trading | | | | you only have to keep a few points in mind |
| recommendations etc. | | | | and then you're all set, to enter the |
| | | | exciting and lucrative world of currency |
| Keep this point in mind - if brokers were | | | | trading. |