We’ve had people ask us how to choose a Forex broker for online forex trading. Here we shall discuss in more detail what we think you have to know about selecting a forex broker.
Low Spreads or Transaction Fees
Online Forex Trading Transaction costs are calculated in pips. The reduced the better. Generally, spreads are still between 2-5 pips on average. Be mindful of forex brokers advertising 0 pip spreads. They’re likely charging fees in certain other way.
Leverage Options and Margin Requirements
Leverage could be a positive thing, or a bad thing, depending on how you utilize it. Better brokers broker forex terbaik will have different leverage options, meaning a collection of leverage ratios. Perhaps a 400:1 leverage ratio is excessive for you. Do they’ve a 200:1, or 100:1 option? You need a forex broker that will provide leverage values you want.
Most online forex brokers pay interest on a trader’s margin account. Bear in mind that a lot of forex brokers do not allow you to accrue interest unless your margin requirement is at the very least 2% (50:1).
Forex Brokers Customer Service
Next to nothing can be as valuable of the same quality customer care, especially with online forex trading. Even if you don’t put it to use, you will have access to some minimum service requirements. Does the Forex broker have 24-hour support? Are you able to contact them by phone? Email? Chat? Whenever you talk for them, do the folks seem knowledgeable? A phrase of caution… service might be better when you open and fund a genuine money account. If you learn that to be the case, withdraw your cash and move on to a fresh forex broker.
Quality of the Forex Broker
You want to make sure you have a quality broker. Forex brokers are not necessary to be registered or regulated with any agency, since the Forex market is defined as an “unregulated” market. However, the higher brokers will typically be registered as a Futures Commission Merchant (FMC) in addition to being regulated by the Commodity Futures Trading Commission (CFTC) and a member of 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 will 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 within the Internet. The backbone of any online forex trading platform is their software system and therefore is quite 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
How big is one lot may differ between forex brokers, spanning from 1,000 to 100,000 units. If you are only starting an account with a couple hundred dollars, you’ll want to locate a forex broker that allows mini lot trades.
Rollover Charges, Interest, or Swap Fees
Rollover describes the procedure of closing open positions for today’s value date and opening the same position for the next day’s value date at a cost reflecting the difference in interest rates between the 2 currencies. This really is also referred to as Interest or Swap Fees.
Forex Broker Trading Hours
Online forex trading occurs 24 hours a day between Sunday evening and Friday evening, which means you will want to select a forex broker that will let you trade during all market hours.
You are able to check out our recommended brokers section to see a number of the forex brokers that people feel are worthwhile. Also, you are able to download our free Forex Broker Checklist to utilize for your broker search.