Choosing Online Forex Trading Brokers

n order to trade in the Forex market you will need to find yourself a broker. A broker is executes trades according to your wishes and earns some commission on each trade.

But there are so many brokers out there competing for your business it can be hard to Select out which one is best.

Considering the Fallowing Points when Choosing Forex Broker

A User-friendly Forex Trading Platform System.

Transaction Expenses

Currency Pairs Available

Fast Execution of Orders

Free Tools

Minimum Account Balance

trading margin requirements

Superior Customer Service

A User-friendly Trading Platform. Some brokers require you to download a trading program to your PC in order to make trades. Others let you make trades directly over the web. Pick a few brokers out and sign up for a free demo account. You can trade with play money while you test out their software and see which one works best for you.

Transaction Expenses. In the forex market, brokers are paid via the bid/ask spread. There should be no hidden fees or Expenses to trade. However, there may be additional Expenses to access certain reports and optional services.

Obviously the smaller the spread the better. Pip spreads vary by broker (and also by currency pairs), so shop around for competitive rates.

Currency Pairs Available. All brokers should at least have the big seven currencies ((AUD, CAD, CHF, EUR, GBP, JPY, and USD). But if you plan on trading New Zealand dollars or Danish krones, you should be sure that the broker is able to do so.

Fast Execution of Orders. Currency prices are constantly moving up and down and any delay in the execution of your order can cut into your profits or add to your losses. Of course its possible a delay will help you, but it never seems to work out that way does it? Look for a broker that can consistently execute your trade at the price you see on your screen. An occasional delay is understandable, but if it happens frequently find yourself a new broker.

Free Tools. In order to analyze currency prices, spot trends, and plan entry and exit points you need access to charting and technical analysis tools. Most brokers offer basic services free of charge with an expanded array of tools for an added charge.

Minimum Account Balance. As a small investor you will need a broker that does not require a large balance to open an account. Many brokers today will let you open a mini-account with as little as $300.

trading margin requirements. The lower the margin requirement, the more leverage you have. If a broker allows you to use 100:1 leverage, that means you can trade $100,000 in currency for only $1,000. You can use margin to rack up huge profits. But don't margin yourself too much or you will find yourself wiped out fast.