Let's get right to it, this article is about how to choose the best Forex broker for you. I'm going to give you some tips on what to look for when choosing a Forex broker, but if you are just looking for one name, then Sax Bank is the best choice for a professional trader. Note that I wrote professional trader here. Sax Bank is considered the top dog in trading platforms (Sax Trader platform), but they're not for everyone. They require several thousand dollars in minimum deposits and their commission is high unless you trade big numbers. If that description fits you, well then they are probably your best choice. If you're not in a position to trade worth $10,000 - $20,000 regularly, then you could be better of with a smaller broker.
A quick word about Forex brokers first. Remember that a Forex broker is not your friend, nor your enemy, but the bottom line is that they make money by charging you a commission in one way or another. Most are decent and trustworthy, but as with all businesses, there are some that use shady practices such as stop-loss hunting, high turnover or unfair spread widening. You want a broker that you can trust and that will not try to pick away at your money every chance they get. Here's the top 3 things to look for:
Cost
What's the spread like with the broker? Some brokers charge a flat commission per transaction, while others use a spread based commission system. Lower spreads are obviously better than higher spreads. Are the spreads fixed? Some brokers increase spreads during periods of heavy trading. This can naturally impact your profits.
Charting and Platform
How is the user interface? A Forex trading platform should have good charting and the option to use technical analysis and draw trend lines etc. How flexible is the platform? You're going to spend a lot of time with the trading software, so it's necessary to be comfortable.
Customer Support
Forex trading takes place 24/7. How fast is support? It sucks to have a technical problem during your trading hours, only to have to wait long for a solution. Check their response time. Do they offer support in several languages? Most of the world speaks English, but some times it's easier to explain yourself in your own language.
Let's recap, the most important things to look for in a Forex broker are:
- Cost
- Charting and Trading Platform
- Customer Support
No comments:
Post a Comment