Best FOREX Broker
If you want to trade currencies then you need to choose a broker and not all brokers are the same, here we are going to look at how, to select the best FOREX broker to help you maximize your FX trading experience.
The rise of the Internet has brought Foreign exchange trading for profit to anyone, anywhere on the planet who has a hundred dollars and a connection to the internet. Currency trading which was once only an investment which large financial institutions and high net worth individuals had access to. Furthermore, with the rise of the internet, dealing costs have been reduced and news and data are available in real time.
Brokers in currency trading give you access to, one of the best ways to build wealth and after you have learned currency trading and developed a trading strategy, its time to open an account and trade for profit - but which is the best currency trading broker?
Below are some key points, you need to keep in mind when selecting a FOREX broker to work with.
Only Use Regulated Brokers
If you are choosing a broker, the first thing to do is to check if there regulated by an official body, in the country in which there located. If there not discount them from your search. When looking to see if a brokerage is regulated, don't accept it when they say, they comply with local company law. This means NOTHING in terms of protection to you. They must be regulated by a regulatory body specific to the FOREX industry which has a clear code of conduct to protect deposited funds.
Even when you have found a regulated broker, check to see how good the regulation is. If you want the best regulation, choose a broker which is regulated in the USA by the NFA or in the UK by the FSA. You need to ensure your money is protected and you are treated in a proper manner, by the company. Don't take any chances with your money, make sure your protected.
Best Broker Deposit Bonus
Many brokers will offer you a bonus to sign up much like the ones you get with online casinos but just like casino bonuses, these currency trading bonuses are loaded with terms and conditions. They normally insist you trade a set number of trades in a certain time period to get the bonus which encourages you to over trade and lose. Don't use a deposit bonus as the major criteria for choosing a brokerage, there are far more important matters to consider which we will look at next.
You can test trading platforms in advance with a demo account and you you should select one which combines ease of operation with reliability. Also check out charting and analytical tools which vary a great deal between brokers. When choosing a demo account to test drive a platform make sure, the demo account is a mirror image of the real live trading account. Most practice accounts are free and you can test as many as you want with dummy trades until you are comfortable and find the best trading account which suits your needs. Finally, take your time with your testing out varies brokers and see which platform works best for you.
This is your cost of doing business, so look for a pip spread that is not going to eat into the profits on your account. If you are a frequent trader, pips can mount up so look for competitive spreads but we would give you a word of warning on the impact of spreads in terms of short term trading strategies:
Most brokers want you to scalp or day trade, because you will lose money and give them income. So avoid t losing, short term trading strategies and pip spreads will not have such an impact on your trading profits.
Most brokers offer good leverage of 100:1 and man will even give you to 400:1 or more which enables you to increase your profit potential but a small margin deposit against a heavily leveraged position is dangerous. We would say, you should never consider choosing a broker on the amount of leverage they offer. This is because brokers want you to lose money so they give traders to much leverage and know, the trader will wipe out their account. Any broker who offers you 50:1 in terms of leverage is giving you, more than enough leverage and we think, 10:1 is a sensible amount to use for any currency trader.
Funding and withdrawals
Make sure that you can get your money back quickly and also, there is a facility to fund your account online should you wish to top up. Today, many brokers allow funding by credit cards, Paypal, wire transfer, MoneyBookers and wire transfer so you will not be short of any funding options with most brokers online..
24 Hour Service
You need a broker who have live operator support to assist you online or by phone 24 hours a day. Make sure this support is available and you can also test it, when using your demo account
Length of time in business
FOREX brokers come and go so make sure that the one you use is an established name and they have been in the business for a while and also consider the size of the broker - a big broker which has been in business for a long time, is regulated and has a lot of clients, probably offers a good service.
Best FOREX Broker Reviews
Many traders like to read reviews of brokers online but these need to be treated with caution. Many of the FOREX broker review sites are actually writing positive reviews and hoping you click their affiliate link which of course you do, you make them money! So there totally biased and should be ignored. So to should the broker reviews of regulated brokers when the client accuses the broker of stealing his money; these are normally just sore traders who really lost, because they were not good traders and want to blame everyone else for their losses.
Note: the above only applies to regulated brokers and not offshore or unregulated brokers, who you should never open an account and deposit money with. With these brokers negative reviews are probably true on traders being scammed by them because there is no regulation in place to protect the trader.
Extras: News Research Trading Tutors
Most brokers will offer you news, research and even trading tutors to help you trade and give you trading recommendations but you don't want any of these services. News you can get anywhere, broker research tends to just be comments on the news and reflect what the majority of losing traders think of the markets and as for the expert to help you, they will just give you losing trading signals - if they were so good at trading they wouldn't be brokers they would be successful traders. So you want no extra services or advice when trading.
Choosing the Best FX Brokers
There is no single best broker for everyone but the above guidelines, will help you find the best FOREX broker for you and connect you, to the world's biggest and best business opportunity trading global currency markets for profit.