Forex trading can make it easy to make a decent living online. Here are four key criteria that you should be looking for when trying to find the best forex brokerage to start with.
Register now to see your history
Traders don’t want to be forced to deal with “forex scams”. You should confirm that the broker you choose has been registered with regulating authorities. If the broker is based in the United Kingdom, check to make sure that they are registered with a forex regulating agency such as NFA(National Futures Association) for brokers in the United States – important link.
Check out the past history forex brokers. Trust and reliability are two of the most important characteristics of successful forex brokers. These details can be found online by searching the broker’s name in discussion forums.
Spreads are the method by which your forex broker is paid. You don’t have to pay them. When you trade, your forex broker will earn spreads. Your forex broker may charge spreads as high as 10pips and as low as 1-2pips depending upon the broker. It’s vital to check if the forex broker charges large Spreads on customers’ accounts. Spreads between 2 – 3 pipp are not allowed by a great forex broker.
The Trading Platform can be used in a very easy way
Many brokers offer complex trading platforms with many instruments. Many beginners are confused because they don’t know where or what to do. Simple trading platforms allow you to quickly and efficiently execute orders. I wrote a review on how to choose a forex broker who uses a simple platform.
It’s possible to practice what you preach.
Forex trading isn’t for beginners. Avoid losing your money by not starting with real money. You should practice trading to see how you do in live trading. Demo trading is offered by brokers. It allows you to practice using virtual money. Most brokers offer demo trades. However, not all brokers provide enough funds for traders to practice.