Forex trading, especially for beginners, is an easy way to make money online.
Below are the top four things to consider when looking for the good forex broker in order to start forex trading.
Register and view your history
No trader wants to be involved in “forex frauds.” It is important to check if the broker you choose is registered with regulating authorities. Find out if the broker has been registered with any forex regulating authorities, such as NFA (National Futures Association) if it is a broker in the United States.
The history of Forex brokers is important as many brokers who are successful have built trust and reliability with their Clients. This information is available online through forums that discuss the broker.
You don’t have to pay your forex broker anything for their services. Instead, Spreads compensates them when you trade forex. Your forex broker will collect spreads from you when you trade, whether you make loss or profit. Spreads can vary from 10pips to as low as 1-2pips depending upon the broker. You should verify that your broker doesn’t have huge Spreads on customer accounts. Forex brokers should only use spreads less than 2pips.
Simplicity of trading platform:
Brokers are often very complex, stuffed full of various instruments for trading. Many brokers are complicated and stuffed with many instruments of trading. This leaves beginners confused. A simple trading platform is recommended to help make orders execution quick, easy and tidy. Here is my review about how to choose a forex broker that uses a simple trading platform.
The best practice is the best:
You should avoid trading live forex markets as a beginner. It is important to practice trading in order to be able to execute and perform your trading skills in real-life trading accounts. Demo trading is available with virtual funds. This is why it’s important to select a broker who offers this service. Many brokers offer demo trading, but not all provide traders with sufficient funds to practice.