Thursday, March 11, 2010

Things To Think Before choosing a Forex broker

Are you Forex newbie? Do you know how to pick a Forex broker? Don't you have any idea? That's okay! I am going to reveal you simple three steps to choose a Forex broker. These simple steps will best suit YOUR needs. Are you thinking now, "Three steps? That''s it?" Yessss!

1. Perform Research

In this step, you should write down the queries you need ask yourself when reviewing different brokers. After listing the FAQ's, do see different Forex brokers and their available features.

I have listed the common questions asked by a newbie to choose a perfect Forex broker below-

1. Does this broker over premium services such as market commentary, news feeds and charting? How essential are premium services to my trading?

2. Do research to find whether the broker credit or debit daily rollover interest? Nowadays some of the Forex brokers do neither, deduct interest or both. This is an important information to you.

3. Do ask the broker whether you can start trading "micro" lots? This facility is not available with most of the brokers.

4. You should fix a very minimal leverage while starting a Forex trading. The old saying, "Less is more," is perfect fit.

5. Following are the some of the essential queries you should ask a Forex broker-

a)Whether the Forex broker offers fixed or non-fixed spreads? How much wide are the spreads?

b) Are you going to deal Desk or Non-Dealing desk broker?

2. Comparing and Contrasting the Forex Brokers

You should compare and contrast the features offered by different brokers to choose a best one. (you can have a look at a separate article on Compare Forex brokers in this blog)

3. Start Dummy Accounts

After asking relevant queries, select two forex brokers that suit your criteria and open demo or dummy accounts. Try to trade in various market environments in different trading platform. Don't hesitate to raise your queries because most of the brokers are really happy to answer your questions.

Once you have accustomed with any of these two brokers, select this broker and open a live account to perform profitable Forex trading. Your Forex broker will help you in all aspects to satisfy your needs. As bottom line, I would like to tell you one important thing- Start off small, test the waters, and stick on to the same forex broker until your end.

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