Forex Trading Made Easy

Before you go about signing for a forex trading account with an online broker, I have a piece of good news and bad news for you. The good news is, there are well over 100 established brokers online which means many choices for you! But the bad news is, selecting one ideal one can be a big headache. This is why we came up with a check list to help you.Checklist When Selecting a Forex Trading Broker:

1. Ask for references with whom you can communicate with.

2. Check the regulatory agencies if the broker is regulated.

3. Go to Forex discussion groups such as forums and see if the broker you intend to sign up with is reputable. Just your gut feel and judgment.

4. Requoting. This is ONE big problem with many online brokers. Basically, what it means is that the trading platform does not give you the rate you see and select on the screen. For example, if you choose to buy Currency Pair A at this quote, they may sell it to you at a higher rate. Sometimes, the difference can be as much as 10 pips!

So be careful here. Many online brokers requote, and some do it almost all the time. This is why Easy Forex is a top choice for many dealers because there is NO requote. It is a real time “What You See Is What You Get” quote. You buy and sell at the rate you choose. Fair deal?

5. Send a list of questions via email to your prospects. The whole objective is to get answers and test their responsiveness. Do the same for their LIVE chat if they have one.

6. Contact the customer support and see how long it takes for them to respond to you. Also, ask questions to know if they are professional as well as knowledgeable enough.

7. Compare account specifics: Account minimums, margins, leverage, bid/ask spread, commissions and so on. Typically, the spreads would vary for different currency pairs. Use EUR/USD as an example as this pair which is the most popularly traded has the lowest spread. Look out for brokers who charge a “lot fee”. So be sure to ask them when you check them out. A good way to ask is to tell them to explain to you what all the costs involved, item by item are. A broker that charges a low spread does not end up being the “cheapest” to go for if there are hidden costs.

8. Trading platform – this is a crucial factor where many new dealers may miss out. Do not get too excited and fail to notice that some trading platforms are terribly difficult to understand and navigate. The interface which you trade on has to be user-friendly and charts and price movements need to be clearly and neatly presented. Forex is dynamic and you cannot waste time trying to fiddle through a complicated platform. Another thing is most trading platforms are not bug-free and do not deliver real time information!

Here is one piece of advice: There is no perfect broker. Choose one according to your needs. We found Easy Forex among so many brokers, to be reliable with a clean and easy to use trading platform as well as a solid NO requoting policy.

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Filed under: Forex Trading, Learn Forex Trading, Selecting a Broker by admin