By Joe Megan
Finding a great broker is important when trading forex to increase your chances of winning and making sustainable profits. Each broker has a positive and negative and you must be clear about what you are looking for before you start the task of sorting through a myriad of brokers all compete for your money. The next 10 steps will give you a clear understanding of some more important problems to consider when choosing your forex broker online.
Step 1: First set what you want from the broker. You have to write down all the things you are looking for and then consider seeing a lot of different brokers before choosing no more than 5, and then destroy it to 3, and then to 1.
Step 2: Next check their reputation with Google-ing or other ways to make sure they are dealers who have a good reputation. See also whether they are registered with a body that regulates normally by NFA, CFTC – US or FSA – UK. This regulatory body gives you security and peace of mind while trading with certain brokers.
Step 3: After your list is damaged, see what type of trading platform is offered by Broker, MT4, Trade Station. The platform must be able to cover all types of orders that need to be placed your strategy to be profitable.
Step 4: Money deposit and withdrawal are the next thing to check. Most brokers will allow you to send or direct their parent credit credit when funding a live account. Brokers now also allow credit card deposits and withdrawals that speed up access to your money and stop time waiting for your money to register in your account. Usually you should expect your money to appear in three working days and if your broker is slower considering changes.
Step 5: Spread is the difference between supply and demand or selling prices and purchase and the smaller the spread is better for your trading account. When choosing a broker with a better spread to see the main currency pair as a gauge whether they will graduate. If the broker has spread at the department no more than 5 pips then it is acceptable, but you can spread in the direction as low as 1 pip. Also diligent and check different trading sessions, Asia, Europe, America, because spread can change because the market becomes more fluctuating.
Step 6: So we are happy so far but now comes trade execution problems. It’s important that when you press away, click the mouse to enter the trade that your platform immediately starts. It may seem changing but when trading a large account, instant trade execution can mean many advantages or losing profits in milliseconds. So make sure instant execution is your broker offer.
Step 7: There is no rejection of orders, it’s true your broker may or may not refuse orders normally when market volume rises and the price range becomes more fluctuating. If you get order rejection, you can lose a large number of pips in the trade you are trying to run. The best solution is to find a broker that does not allow order rejection, if it does not have many brokers and place orders in various brokers simultaneously.
Step 8: Slippage is no, no. If you find your order not filled at the price you have chosen in your order then your broker uses Slippage. This usually occurs during periods of market volatility but this also means you lose pips in trade. Your choice broker should not allow slippers because consultive cons for you to trade successfully.
Step 9: Margin. How much money is a broker requested in your account to maintain an open position when trading forex. It’s like a deposit that includes current trading that you might enter. All brokers will start a margin call if your current account balance can no longer guarantee open trade.
