How to properly choose a good Forex Broker?

To operate in the currency market, you need to open an account with a firm respect and recognition. The following information will provide tools necessary to take into account when choosing a Forex broker.

Low Spread - The difference between "bid" (the value received when you sell), and "ask" (the amount you pay when you purchase) is called the "spread or spread" and is represented by PIPs. The PIPs represent the minimum unit of change in the value of a currency. In other words, the PIP represents the minimum value in changing a currency pair. For example, a PIP for the pair USD / CAD is $ 0001. Spread a drop or spread means a higher benefit for you, since the cost to acquire or sell foreign currency would be lower. In other words, there is a low spread, you would pay a lower commission.

Broker a solid and respectable - if your broker is in the United States, you could check the net worth of its agent, access www.cftc.gov / marketreports / financialdataforfcms / index.htm. The higher the capital of the firm, exceeding the minimum of $ 5 million, the greater protection of their funds.

If your broker is not in the United States, find out who regulates the activity. Europe, Canada, Hong Kong and Australia, have adequate rules and capital requirements are high. If your company is in a developing country, the current rules might not be appropriate. You might ask why a firm would be established where existing regulation is not adequate enough to protect me? Could it be that the company is not very respectable?

To determine the vitality of a broker, you should see the number of employees it has. If it is a solid and respectable organization, you have hundreds of employees, which may assist you 24 hours a day. It is also likely to have hundreds of thousands of accounts. In a firm where the number of employees is limited, it is unlikely that there is a considerable level of capitalization, or are capable of providing the personal assistance you need.

Registered Broker - Make sure your broker is registered with the Futures Commission Merchant (FCM in http://www.fcm.gov), which is regulated by the Commodity Futures Trading Commission of the USA (CFTC at http:// ctfc.gov). You can find information about the brokers registered with the CFTC's website.

Greater Leverage - Leverage is a double-edged sword. Can help you get significant benefits, and can cause huge losses. Therefore, as Forex traders, we use the leverage to obtain profits through the art of the Winning Edge. Gain through a limited capital is very difficult, even when it hits you the trend in the currency market. That's why you need a broker that provides leverage to operate in this way effectively in the currency market. Naturally, more leverage means better opportunities for you. Some brokers offer 100:1 leverage, meaning that for every dollar in your account, you can borrow and use up to $ 100. Other brokers offer up to 250:1. Therefore, when choosing a broker, taking into account the leverage it provides, as it could be your ally to win big.

Types of Accounts - A broker can offer different types of accounts. In general, the accounts "Mini", require a minimum margin or equity that could be $ 250 and up. With this type of account, you can operate in forex but the leverage is lower. There is another type of account called "Standard", which requires at least $ 2000. This type of forex account allows you to open larger positions. Of course a "Premium" will allow you to open positions still.

Real-time information - Many Forex brokers offer real-time information through the use of platforms. This could save you money if you receive information in real time through paid subscriptions.

Graphics Tools - A number of brokers Forex technical analysis and provide tailored information regarding economic indicators. You may have this information it is not very useful to operate. To use the technique of the Winning Edge Forex System, you should use a commercial platform. Indicators Winning Edge Forex System were developed to be used by a platform. To operate using the technique of Winning Edge Forex System, requires a Commercial Trade Station or Platform.

Avoid so-called brokers or Snipers Hunters - These brokers often buy or sell based on predetermined points. Usually perform these maneuvers to increase profits, avoid this type of runners. But to know these corridors should be reported and interact with other players online or through forums.

Do not pay commissions Spot

Forex traders do not pay commissions for placing orders, unlike those who operate in future markets. In fact, a Forex broker is a mere intermediary, not a broker or agent itself, thereby not paying any cost in the execution. As mentioned above, they get benefits through the spread, ie the difference between the value of the "bid" and "ask."