1. Regulation: The forex market is not regulated because there is no central exchange. Regulated forex brokers that are trustworthy are, however. If the forex broker is located outside the US, they must be registered as Futures Commission Merchants (FCM) with Commodity Futures Trading Commission (CTFC) or a member of the National Futures Association (NFA). The NFA website lists NFA-registered brokers.
2. Initial Deposit: It is a good idea to look for brokers who require a small initial deposit. For micro accounts, deposit amounts should be between $100 and $500. Regular accounts deposit amounts can be anywhere from $1,000 to $5,000. Although you want your initial deposit to be as low and manageable as possible, it is important that you do not deposit too much to risk losing your account. You should only invest what you are able to afford.
3. Spread: This is the difference between the ask and bid price. It is how forex brokers make money. We want the spread to be as small as possible. Spreads for most traded currencies are between 3-5 pips. A fixed spread is better than a variable spread that adjusts for market volatility. Variable spreads can adversely affect your trade and sometimes can take you out the market by hitting your stop order too early.
4. Currency Pairs: Find a broker who offers the most liquid currencies against the U.S. Dollar, including the Japanese Yuen (JPY), Euro(EUR), British Pound [GBP], Swiss Franc (CHF), Canadian Dollar/CAD), New Zealand Dollars (NZD), and Australian Dollars (AUD).
5. Lot Size: You will need a minimum lot size if you’re new to forex trading. Regular accounts can have a lot of $100,000, micro accounts can have a lot of $1,000 and mini accounts can have a lot of $10,000. Get more: https://appoftheday.downloadastro.com/
6. Adjustable leverage: This allows you to manage large amounts of money with a limited amount of your trading account. A broker should allow leverage between 100:1 and 400:1. A lot of brokers will allow you to choose a leverage ratio between 100:1 and 400:1. This not only lowers your risk but also reduces your potential profit per trade. Even if you don’t use higher leverage, it is still a good option to have a ratio between 100:1 and 400:1.
7. Trading Platform: The trading platform should be intuitive, easy-to-use, and include extensive technical analysis tools. Before you trade with real money, make sure to test the broker’s trading platform. Avoid brokers that have complicated trading platforms or do not permit quick and easy order placement.
8. Customer Support: Your forex broker should be available 24 hours a day. If you have any questions about your order or need assistance placing an order, you should be able to call your broker at any hour of the day. Many brokers provide live chat within their trading platform, which is a huge plus.
9. Account Funding withdrawal: Although most brokers use the same methods for account funding or withdrawals, you should look for one that offers the option of account funding by debit or credit cards. Withdrawals are faster than waiting for funds via check and account funding with credit/debit cards is instantaneous. For more info about wikifix review, Visit our website.
10. Reputation: Forex message boards like Forex Factory can be used to research forex brokers. Instead of focusing on individual comments, such as good or bad, try to get a general picture of what people think about a broker. A broker that has had a negative experience with their broker does not necessarily make them untrustworthy. If in doubt, simply post and ask for feedback about any broker you are considering.
If you are aware of what to look out for, choosing a forex broker doesn’t have to be complicated. These 10 factors will help you find the right forex broker for you.
