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By Lucrative
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Before being a Forex trader, it is necessary that you choose a Forex Broker. Years ago, finding best forex brokers was easy. Why? Simple, there were only about two or three forex brokers on the market! Today the task is more difficult. With the growth of the internet, other forex brokers emerged.
Forex Market is a profitable option for those who trade the forex market the right way and choose best forex brokers. There are many criteria that must be taken into account before choosing a forex broker.
But what are the criteria?
If you are trading for the first time, you can opt for a Forex Broker that allows you to deposit small amounts to reduce your risks. Of course, this is just one criterion that must be taken into account because this choice depends a lot on your trading style.
A Forex Broker system must provide a trading platform (or more than one) where you will receive accurate real-time quotes to complete trades quickly and reliably.
A good Forex Broker offers up-to-date charts and information about events (economic calendar) that can affect the markets. For example, it will save you a lot of time if you find the current interest rate in your broker’s system.
Good forex brokers also offer free “demo” accounts for traders to start trading a counterfeit money account to see how the system works. Always opt for brokers that let you take control across all platforms offered.
Keep in mind that the role of the Forex Broker is to trade your currency signals in the market efficiently and smoothly. And speaking of problems, find out the hours, days and forms of support that the Forex Broker offers.
Take into account the fees the Forex Broker charges and the leverage it offers. Look for Forex Brokers who are willing to offer stops and negative balance protection should something go wrong during your trading session.
Watch out for spreads. The smaller the spread, the less you are paying for the trade. A smaller spread is more relevant for a forex trader who executes a lot of trades in a short period of time with lower profit objectives. On the other hand, traders who use a forex trading system that aims to capture medium to long term market swings are less affected by the higher spread relative to the currency(ies) pair(s) they are trading.
There are forex brokers that provide on stop and limit orders guarantees. However, always note the “fine print” of these warranties. As an example, some brokers will say that the guarantee is good, except in “extreme market conditions”. Be sure to ask them what these “extreme market conditions” are. Is it just in the Non Farm Payrolls (NFP) announcement? NFP measures the amount of jobs created in the US during the previous month. This is typically released on the first Friday of the new month and also includes the unemployment rate, average hourly earnings and participation rate . If so, how long before and/or after the NFP release is the warranty valid?
Analyze the whole…
We quote several criteria, so we don’t analyze and compare forex brokers just by one or another isolated criteria, but by all of them. Choosing best forex brokers and continuing to learn about forex trading is the key to your success. In future articles, we will continue to address this subject that is so relevant in the world of Forex Trading.
We quote several criteria, so we don’t analyze and compare forex brokers just by one or another isolated criterion, but by all of them. On our website, Lucrative, you will also find a dedicated review section to help you make informed decisions about the best forex brokers. Choosing the best forex brokers and continuing to learn about forex trading is the key to your success. In future articles, we will continue to address this subject that is so relevant in the world of Forex Trading.