Once you have done all your research and determined the amount of capital you want to invest into the Foreign Exchange Market, it is time to choose a Forex Broker. Choosing a good broker is important, because they help determine your investments. So what do you look for when trying to pick a broker? Look into these five things first:
Compare The Spread
The spread is the amount that the broker charges for each transaction. For instance, there might be a 3 pip spread between USD/EUR, but the broker will charge 5 pips, pocketing the 2 pip difference. Some brokers have large spreads, and some have small spreads. This is one thing to consider when choosing a broker, but it is definitely not the only thing. Like so many other things in life, cheaper is not always better.
Because of the large amounts of capital that is required to trade on the Forex Market, large banks or institutions back most brokers. Make sure the broker you choose in sufficiently backed. In the past, there have been brokers with very little capital behind them, and that can be a very dangerous place to keep your money.
Choose the Right Platform
There are so many platforms available for you to choose from, Visit as many as you can, and determine which one is the most user-friendly for you. Make sure they have all the necessary information and education to help you as you trade. Many of the brokers offer a live Forex EA that you can talk to online. This can be good for more detailed questions you might have. Most of them also have webinars, articles explaining the process, and practice accounts that allow you to test your theories before you put them into actual practice. There are some that use Forex Trade Copier with their platform, which was ranked #1, though there are other good ones out there as well.
Be Able to Study Forex
You need to understand the Foreign Exchange Market before you jump in and invest your money. Make sure to do a complete Forex Analysis, and learn to understand the Forex Signals. Your broker should offer easy access to valuable analysis and timely signals.
Proper Account Types
Finally, you want to be sure that your broker offers different types of accounts. You want them to be able to accommodate the different types of traders based on the amount of capital they have to invest.