After you have made a decision about the way you intend to trade the forex market, as well as the money management rules, it might be time for you to find a professional forex broker.
There are many brokers available such as FXCM, so it’s worth researching before you choose a forex broker. You should be aware of these things when choosing a forex trader:
Spreads low
Spread is how forex brokers make their profit. Spread is the difference of the price at a particular time that a currency can be bought and the price at which it can sold. Look out for spread costs when choosing a broker. The spread is a measure of how fast you can make a profit.
Quality registered institution
FX brokers in the United States must register with the Commodity Futures Trading Commission to be a Futures Commission Merchant (FCM). They should also join the National Futures Association. You can check the brokers CFTC registrations and NFA membership. You should not deal with brokers who are not backed by a trusted institution.
Numerous options for leveraging
Forex trading requires leverage due to the fact that currency prices are often only fractions a cent. In general, leverage can be defined as a ratio of your capital to the amount that a forex brokerage will lend you. Take, for instance, the ratio 200:1. This is a forex broker lending you 200 times your money. The margin calls can be risky so use more leverage. However, it could lead to higher profits. You should start small and have access to a broad range of leverage options. This will give your more control over the risk exposure.
Many tools
A majority of larger forex brokers offer a range trading tools to their clients. You can get real-time currencies prices from most brokers. It is important that you have all the tools needed to trade successfully with your forex broker. Others tools may include:
o Real-time currency prices charting
o Technical analysis instruments
o Commentaries on fundamental analysis
o Economic calendars
Brokers who are skilled in forex trading offer two or more accounts. A mini account is a small account. Mini accounts need you to contribute at least $500. In return, you will be able to leverage a large amount. Profits from trading capital of this size require you to use leverage. Standard accounts usually have a minimum capital requirement between $1,000 and $2,000. A minimum capital requirement is required for all standard accounts. It’s usually between $1,000 and $2,000.