One essential ingredient that you must have when starting online foreign currency exchange trading is an account with a Forex trading broker. The currency trading broker is your connection into the markets and they will provide the essential cover that allows you to trade with margins.
The question is how do you select the Pepperstone Review Forex brokers. There are at least 7 criteria points to be considered when you are deciding where best to shop for a Forex currency trading broker.
This works on multiple levels. You need a broker that you can rely upon to be trustworthy and who will not all of a sudden vanish like a puff of smoke from the internet taking with them all of your hard-earned money. The FX market is surprisingly devoid of regulations so there are a vast number of Forex brokers to choose from and as is like with many things in life some Forex trading brokers are more honest than others.
The first step is to check up on the reliability of the currency trading broker and to confirm your online Forex broker is regulated. In the USA this means that you want a Forex trading broker that carries a current registration with the Commodity Futures Trading Commission (CFTC) and also the National Futures Association (NFA).
Check for a Forex currency trading broker with an unblemished record regarding any complaints lodged against them on the National Futures Association website. Other countries have their own regulatory bodies for example the Financial Services Authority in the UK performs the same function.
Another consideration is whether the online Forex broker’s trading platform is reliable. The Forex trading platform is the financial software that will connect you to the FX markets whenever you want to trade. If the online Forex trading platform is often offline then this will cause you some major problems. For example, you could miss out on either opening or closing a trade at the optimum time.
It would be best to check a number of online Forex trading forums for feedback from individual users regarding the amount of downtime that they have experienced. Remember it is like with all online forums do not listen to the loudest voice as they may have a vested interest either way in recommending or not recommending who in their opinion are the best Forex brokers
- Services Provided by the Best Forex Brokers
The Forex markets trade for a full 24 hours each day that’s from Sunday evening through to Friday afternoon Eastern Standard Time. Check that your Forex broker’s trading platform is reachable available during all of these times, The best Forex brokers trading platforms will be available and they will also offer around the clock customer support on Forex trading days.
Check that they cover the seven main currencies that are USD, JPY, CAD, AUD, CHF, EUR, and GBP certainly the best Forex brokers will.
The best Forex brokers will offer you a minimum of the following essential tools, which are instant execution of your Forex trade at the price displayed, technical analysis charts, and financial trading charts. Most will also offer a training program to teach the basics of using the tools.
- Forex Broker Costs
Online Forex brokers do not make commission charges to their customers so the way they make their income is from the difference in the Forex trading spread. The Forex spread is the difference between the buying and selling prices on any of the currency pairs. The Forex trading spread is usually any spread between 1 pip and even sometimes less to around 3 pips; this will depend upon the online Forex broker’s terms of service and the currency pair being traded.
The piece of the pie taken by the spread can make all the difference between achieving a profit or making a loss in your Forex trading account. This will affect both the immediate term and also the longer term so you will need to scrutinize closely at what level the spread will be computed. If you can decide which pairs you are likely to trade most frequently the spread on those pairs will be more important to you than on others. For example, I prefer the USD/GBP trading pair, which is known as cable.