Choosing the ideal a good Forex Broker
We’ve had people ask us how to select a Forex broker for online forex trading. Here we will discuss in detail what we think you should know about choosing a forex broker.
Low Spreads or Transaction Fees
Online Forex Trading Transaction costs are calculated in pips. The reduced the better. Generally, spreads are still between 2-5 pips on average. Be cautious of forex brokers advertising 0 pip spreads. They’re likely charging fees in certain other way.
Leverage Options and Margin Requirements
Leverage can be a a valuable thing, or even a bad thing, depending on how you utilize it. Better brokers broker forex terbaik may have different leverage options, meaning a selection of leverage ratios. Perhaps a 400:1 leverage ratio is too much for you. Do they have a 200:1, or 100:1 option? You’ll need a forex broker that can provide leverage values you want.
Most online forex brokers pay interest on a trader’s margin account. Bear in mind that a lot of forex brokers do not permit you to accrue interest unless your margin requirement is at the very least 2% (50:1).
Forex Brokers Customer Service
Almost nothing is as valuable nearly as good customer service, especially with online forex trading. Even if you don’t put it to use, you ought to have access to some minimum service requirements. Does the Forex broker have 24-hour support? Can you contact them by phone? Email? Chat? When you talk in their mind, do the people seem knowledgeable? A word of caution… service may be better when you open and fund an actual money account. If you find that to be the case, withdraw your hard earned money and move ahead to a fresh forex broker.
Quality of the Forex Broker
You want to be sure you have a quality broker. Forex brokers are not needed to be registered or regulated with any agency, considering that the Forex market is labeled as an “unregulated” market. However, the better brokers will typically be registered as a Futures Commission Merchant (FMC) as well as being regulated by the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA).
Forex Brokers Trading Tools and Research
Better brokers have trading tools readily available for their account holders to aid them inside their forex trading. Also, most brokers may have some type of research available or displayed directly on their trading site.
Online Forex Trading Platform
Most, if not all, Forex brokers allow trading within the Internet. The backbone of any online forex trading platform is their software system and therefore is very important.
Forex Brokers Available Currency Pairs
Ensure that the prospective broker offers, at minimum, the seven major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD).
Minimum Trading Size Requirement
How big is one lot may differ between forex brokers, spanning from 1,000 to 100,000 units. If you are only starting an account with a few hundred dollars, you’ll want to find a forex broker which allows mini lot trades.
Rollover Charges, Interest, or Swap Fees
Rollover refers to the procedure of closing open positions for today’s value date and opening the same position for the next day’s value date at a price reflecting the difference in interest rates between both currencies. That is also called Interest or Swap Fees.
Forex Broker Trading Hours
Online forex trading occurs 24 hours each day between Sunday evening and Friday evening, which means you would want to select a forex broker that allow you to trade during all market hours.
You can take a look at our recommended brokers section to see a few of the forex brokers that individuals feel are worthwhile. Also, you are able to download our free Forex Broker Checklist to make use of for your broker search.