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3 tips to consider when choosing Forex brokers by Dragan Lukic
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3 tips to consider when choosing Forex brokers |
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Finance & Investment,Investment
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The number of Forex brokers in today’s market is staggering. This sheer volume however, does not mean that they all have your interests at heart. In fact, there is a small majority of Forex brokers that are simply out there to take your money and are not considerate at all of your success. Saying that, there is a huge list of ‘trustworthy’ brokers out there too and picking the right one can also be difficult, especially if you are a new trader and are not sure what to look for. With this in mind, below is a simplified version of the kind of factors that you should consider when analysing a list of Forex brokers. Cost of trading This refers to spreads and commission. Spread is the difference between the buying and selling price of a currency pair. For example, if the price for EUR/USD is 1.38850/1.38860 the spread is 10 pips wide. This means that 10 pips worth of profit has to be made in order to break even. It is only after this point that traders can make a profit. Wide spreads are not necessarily a bad thing because it can show that the prices supplied to them by the Interbank market are kept at the same width. It is the low spread Forex brokers that you should be wary off. In some cases, spreads are lowered to attract new business (especially from knowledgeable new traders) only to find that the broker cheats by trading against their customers. Commission is the fee you are charged when placing an order. It varies depending on which broker you use but we tend to see low spreads with high commission and high spreads with small or zero commission. Whatever the combination, you must ensure that the prices provided are fair and the cost of trading is low. Easy to use platform MT4 or MT5 are used widely now but some Forex brokers have their own trading platforms too. As usual, they are referred to as a ‘bespoke’ and ‘most effective’ trading instrument out there. The reality is that all trading platforms do the same thing – get you in and out of markets. Fancy gadgets that come along with it are more than likely not useful to you hence, they are merely a sales tool for new business. The only thing you need to do is to ensure their platform is easy to use and enables you to act on your trading decisions in the quickest and most effective way. Support This is especially important if you are a new trader. A good support team speaks great words about the company you have chosen. If they are able to help you in a professional manner no matter the type of query you have, then you should be safe. If they have no support team or the one they have brushes past your queries then the chances are you are not safe. There have also been many instances where crediting your trading account is really easy but taking the money out requires a 2 week process with a number of forms to sign. This is not right. You should be able to credit or debit your account as often as you please with the greatest of ease. Our website provides the most comprehensive Forex training course which is aimed at new and up-coming traders. It also includes a list of trusted Forex brokers which you can chose from to start trading.
Related Articles -
forex training, forex trading, forex, forex brokers,
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