If you need to open a FOREX trading account, there are some credentials you must get from your broker. Some of them are essentials while others just act as supplemental data. By using those data, you can learn about the broker. See if they are really here to help and do business with you because these days, there are many cases where the broker just run away with your money.
Those essentials you need to know from your broker are as follow;
The spread You want to make sure that your broker offer competitive spreads. In the FOREX world, there are two types of brokerage firms. One is called a fixed spread broker and the other is called an ECN (Electronic Communication Network) broker. Both of these brokers, each with their own unique spread offer. With fixed spread broker, every spread on their platform is fixed to a certain value, while with ECN broker, spread are varies, they are depend on the time you want to trade, or they are offer on the fundamental based calculation
Leverage More leverage means more power for your ability to make bigger trade volume. So that means that you can trade more with less capital within your trading account. But today, if your broker is a US based broker, the biggest leverage you can use is 1:50, while with Non-US brokers, you have the option of using bigger leverage up to 1:500.
Trading tools All traders should have access to use sophisticate trading tools (indicators) from within their broker platform. It is necessary for them to use the tools because investors can have much better chances when they are using such tools. In many cases nowadays, we find that there are many big name brokers that do not provide their clients with necessary tools. You might want to check on this before joining a broker.
You need to avoid scams As previously mentioned, there are many cases of brokers scamming their clients and get away with it. You want to make sure that this doesn't happen to you, and to do that, you need to join with at least registered and regulated broker. Each country have their own regulatory commission. In this case, regulatory commissions in the States are CFTC and NFA.
Those essentials you need to know from your broker are as follow;
The spread You want to make sure that your broker offer competitive spreads. In the FOREX world, there are two types of brokerage firms. One is called a fixed spread broker and the other is called an ECN (Electronic Communication Network) broker. Both of these brokers, each with their own unique spread offer. With fixed spread broker, every spread on their platform is fixed to a certain value, while with ECN broker, spread are varies, they are depend on the time you want to trade, or they are offer on the fundamental based calculation
Leverage More leverage means more power for your ability to make bigger trade volume. So that means that you can trade more with less capital within your trading account. But today, if your broker is a US based broker, the biggest leverage you can use is 1:50, while with Non-US brokers, you have the option of using bigger leverage up to 1:500.
Trading tools All traders should have access to use sophisticate trading tools (indicators) from within their broker platform. It is necessary for them to use the tools because investors can have much better chances when they are using such tools. In many cases nowadays, we find that there are many big name brokers that do not provide their clients with necessary tools. You might want to check on this before joining a broker.
You need to avoid scams As previously mentioned, there are many cases of brokers scamming their clients and get away with it. You want to make sure that this doesn't happen to you, and to do that, you need to join with at least registered and regulated broker. Each country have their own regulatory commission. In this case, regulatory commissions in the States are CFTC and NFA.
About the Author:
If you would like to know the better method on how to find the better forex broker, you can read this article. good broker is usually the one who provide you with the better forex trading software to help you with your business.. Check here for free reprint license: Know These Simple Steps To Conquer The Forex Industry.
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