If you are a complete beginner it is important to first understand what the Forex Market is and isn’t. Forex is the a money trading market where money trades faster back and forth faster than you will be able to fathom. Every day brand-new traders want to jump into this market when they discover of the advantages:
- The Currency market provides trader with a high return on investment
- Forex Moves Fast and can be traded anytime and anywhere
- Forex is the most liquid market in the world
What To Look For in A Broker
Let’s think about how things have changed in during the internet age. It used to be that only large institutional traders were able to participate in the Forex Market. It was a marketplace available to the average trader unlike it is today. The good thing is it is a great way for an ambitious and smart trader to make a living on their own or just make a little money on the side. The broker you choose will help you make it in this industry. I will give you some things to think about.
Do You Use Technical Analysis?
One thing that is important about modern day trading platforms is the way you need to customise your charts for quick and efficient technical analysis. As an Example, It is always important for my charts to stream in real time, have moving averages, and, of course, Williams Percent R.
How Much Support Do You Need?
I have dealt with a few different brokers and each of them is different when it comes to customer support. Think about your skill level and the difficulty of questions that you will need to be answered. Sometimes online reviews will tell you whether the customer service is bunk or great.
Is Forex The Only Thing You Want To Trade?
If Forex is the only thing you want to trade, then I would say go with a specialised Forex Broker. Understand that there are some brokers that offer you other products as an all in one package. There are multiple Forex Products you can trade, options, stocks, commodities and futures. Some people will want to use a diverse trading strategy instead of only Forex. There is always the option of having more than one portfolio.
How What About Those Bid/Ask Spreads?
This is something that every currency trader thinks about. This is a brokers market meaning that the buyer pays the ask price, the seller always gets the bid price and the broker gets the amount in-between. This means that it is a benefit for brokers to have a huge spread so this is something that you will want to keep track of. You don’t want the broker to take all your hard earned profits.
Are You A Low Funded Trader?
This is the last thing I am going to talk about. Low funded can be defined as many things, but I will say that this is less than $1000 in trading funds. If you fit into this category understand that there are fewer options for you to choose from and you will need to research out brokers that allow you to trade low funded.
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