The essential in trading Forex is getting you a good broker. After all without a broker you can't even trade in the first place! But it is easier said than done. There are so many brokers in the market to choose from and frankly speaking not all things in life (or Forex) are made equal. You got to choose the best broker for YOU, to ensure that you get the best service for your money.
Without a Forex broker you will not be able to make any trades and that's the truth. There are many different brokers, all of who claim to be the best for you and making a decision for one over another is not easy. Before you take the plunge and make a decision take a moment to look through this check list and then decide who the best is for you.
1. The spread
For a new trader, the spread is often the most important consideration for choosing a broker. In fact close to 8 out of 10 new traders base their selection criteria sole on this point. While the pip spread is important, bear in mind that there are many other factors to consider in choosing a broker. Rule of thumb is that as long as the pips for the majors don't go beyond 5 pips during normal trading than you can consider the broker.
2. Normal trading vs. news trading times
A lot of brokers will tell you that their pip spread is guaranteed during normal trading conditions and will vary during news outbreaks. The problem is that a lot of brokers don't tell you when the normal trading times are and when are the news breaks. This leads to a lot of confusion and a lot of unhappiness especially for traders who do a "set and forget" kind of trading and then get kicked out of a trade because of a news break. There are of course brokers that actually tell you when a news break is coming up by proving a calendar of the important news releases and that helps a lot. (I had to search hard till I finally found some good ones that provided this service)
3. Ease of use and fills
The platform that the broker provides is important as well. You will want to have as much control as possible in your trading. But you will also want things to be as simple and as straight forward as possible. Don't be mistaken, it is the simplest systems in Forex that are the most effective. Next you want to ensue that your orders are filled immediately. If you have to wait for more than 10 seconds to get your orders filled, I think you had best search for another broker. The Forex market is huge; there is no possible excuse for the broker to not fill your orders. You wouldn't want to be stuck in a situation whereby you want to exit the market but the broker is unable to find takers for your orders. In this case the broker must then fulfill your orders out of pocket. Usually what happens is a technical error. Yeah some shady dealers from the past used to do that pretty often to buy themselves some time.
All brokers are good, if not they will not last long in this business. You just have to find the right broker for you. That takes a little time and some experimenting. Keep an open mind when you use the platform and make more money.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only! |
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