How To Choose A Forex Broker: Forex-RateIt!

How to Choose a Forex Broker?

By – Forex-RateIt.com

http://www.forex-rateit.com/

FOREX stands for FOReign EXchange

It is one of the world’s largest financial markets with a daily trade worth over 2

trillion



Do YOU want a

piece of the larger

FOREX pie?



Start Trading in the Forex Market?

To start trading in the forex market, you have to set up an account with a forex broker.

Forex brokers are firms or individuals who assist you in the trading activity.

They carry out trade (buying or selling currencies) as per your instructions.



How Does a Forex Broker Help You?

Provides software platform which enables online forex trading.

Offers updates related to the forex market.

Advises traders in the selection of currency pairs.

Facilitates trading through expert market analysis.

Helps with trading strategies and offers timely alerts.



Are You Looking for a Forex Broker?

Internet is flooded with online forex brokers.

Do not select a broker randomly.

Invest time in thorough market research.

Your decision will impact your profit.



How to Choose a Forex Broker?

1

2

3

4

Minimum Deposit

Leverage

Demo Account

5 Spreads

Regulations



Is Your Forex Broker Regulated?

Trading with an unregulated broker is like putting your money at risk.

Make sure the broker is fully regulated with the concerned authority.

Some of the major regulatory authorities are - Financial Services Authority UK and U.S. Securities and Exchange Commission.



What is the Minimum Account Deposit?

Choose a broker as per your investment budget.

Look out for minimum account deposits.

It is the amount required to start a live trading account.

Some of the most popular forex brokers have high minimum deposit.

For budget accounts, opt for emerging forex brokers.



What is the Leverage?

In forex, leverage is the margin ratio available to the account deposit.

With a leverage of 100 and minimum deposit $5,000, you can trade for $500,000.

Different brokers offer different leverage ratio.

As per the experts, 100:1 leverage is sufficient for individual traders.

A high ratio will compel you to trade for higher positions increasing risk factors.



Does the Broker Offers Demo Account?

A demo account is a free trading account that allows users to hone their trading skills.

You can experiment with currency trading through a demo account without losing money.

It enables you to test the features of trading platform.

Novice traders should opt for a broker that offers demo account.

A demo account is available for a limited period.



Understanding Spreads

Spreads are crucial for short-term traders.

Not all brokers deal in all the currency pairs.

Choose a broker that offers good spread range for the currency pairs in which your are interested in.

An ideal spreads range is between 2 to 3 pips.



Read Broker Reviews

Always read broker reviews provided by forex experts and users.

Expert reviews contain detailed analysis of the broker.

User reviews offers in insight into the operational excellence of the broker.



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