We have had people ask us how to choose a Forex broker for online forex trading. Here we shall discuss at length what we think you have to know about picking a forex broker.
Low Spreads or Transaction Fees
Online Forex Trading Transaction costs are calculated in pips. The lower the better. Generally, spreads are now 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 a bad thing, depending how you utilize it. Better brokers broker forex terbaik can have different leverage options, meaning a choice 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 will provide the leverage values you want.
Most online forex brokers pay interest on a trader’s margin account. Remember 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 can be as valuable nearly as good customer service, especially with online forex trading. Even though you don’t put it to use, you ought to have access for some minimum service requirements. Does the Forex broker have 24-hour support? Could you contact them by phone? Email? Chat? Once you talk for them, do individuals seem knowledgeable? A phrase of caution… service may be better before you open and fund a genuine money account. If you learn that to function as case, withdraw your cash and move on to a brand new forex broker.
Quality of the Forex Broker
You wish to make sure you have a good broker. Forex brokers aren’t required to be registered or regulated with any agency, since the Forex market is defined as an “unregulated” market. However, the greater 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 person in the National Futures Association (NFA).
Forex Brokers Trading Tools and Research
Better brokers have trading tools readily available for their account holders to help them in their forex trading. Also, most brokers can have some type of research available or displayed on their trading site.
Online Forex Trading Platform
Most, if not absolutely all, Forex brokers allow trading on the Internet. The backbone of any online forex trading platform is their software system and as a result is very important.
Forex Brokers Available Currency Pairs
Make sure that the prospective broker offers, at minimum, the seven major currencies (AUD, CAD, CHF, EUR, GBP, JPY, and USD).
Minimum Trading Size Requirement
The size of one lot may differ between forex brokers, spanning from 1,000 to 100,000 units. If you should be only starting an account with a couple hundred dollars, you’ll want to discover a forex broker which allows mini lot trades.
Rollover Charges, Interest, or Swap Fees
Rollover identifies the process of closing open positions for today’s value date and opening the exact same position for the next day’s value date at a price reflecting the difference in interest rates between the two currencies. This really is also known as Interest or Swap Fees.
Forex Broker Trading Hours
Online forex trading occurs 24 hours per day between Sunday evening and Friday evening, so you may wish 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 people feel are worthwhile. Also, you are able to download our free Forex Broker Checklist to utilize for the broker search.