Choosing a Forex Broker – Top 5 Things To Look For
Posted on January 25, 2013
Do you want to start making money in Forex trading? Don’t sign up with a broker until you read this! Trust me, choosing the right forex broker makes all the difference in the world. I learned the hard way when I first began trading forex. Now, several years later, I know how to spot the good brokers from the bad brokers. Choose a bad broker and you will see all your profits stolen by scammy practices. Here’s the top 5 things to look for:
Spread is the commission a forex broker makes on every trade. You want spreads as low as possible or you will end up losing most of the profit on small trades.
Minimum Account Deposits
Before you sign up with a broker, check their mininum account deposit. The big brokers require several thousand dollars in deposit.
You want your trades to be carried out instantly or you won’t be able to take advantage of good market conditions. Some brokers are slow in making trades – known as slippage – avoid at all costs!
Charting and Technical Analysis
Look for a broker with good charting. You want to be able to get a good overview of the price movement at all times. This includes the ability to draw indicators such as the moving average.
How much can you leverage your trades? 50 times, 100 times, 400 times. This is what makes forex trading so exciting. The ability to trade for many times your deposit.
I want to recommend Ava FX as a good forex broker. I use them, they have low spreads, 47 currency pairs (and some commodites) and they are fair and have good service. They are not flashy with their marketing but they are good. Try their free demo account!
Written By: Huey Davis
Huey Davis is a semi-retired Forex trader, living in beautiful Thailand. He runs the website:ForexTradingWinners.com