There are 4 key criteria to choose a good forex broker

Picking the right broker to start your Forex trading business can be crucial for your future. Many experts claim the broker makes all the difference when it comes to a forex trader earning $1,000 a day versus a person making $15 a day. When choosing a forex brokerage, you should consider four factors. Each of these is important to your overall success and the integrity of the broker, more about the author?

Spreads are one of the most important factors to consider before choosing a brokerage. A spread represents the difference between a currency’s buying and selling prices at a certain point in time. Forex spreads rise during times of high volatility, so it’s important to check them on days when the market is calm. It is recommended that the spread on popular currencies such as dollar and euro be about 3 “forex pips”. Spreads that exceed five pips for major currencies in calm markets should get a firm “No”.

Also, the currencies supported by a broker are a great indicator. Most brokers offer the opportunity to trade “the mains” or the currency pairs with the biggest trading volume. Examples include the US-dollar and Euro. Most forex traders, however, prefer to play it safe and only trade currency pairs that are less common, like the Israeli shilling. You should check that your broker offers all the pairs you wish to trade.

Opening a forex trading accounts can cause many traders to worry about their minimum deposits. Many brokers insist on large minimum deposits – sometimes up to $10,000. A few brokers will open trading accounts with as little as 25 dollars. With leverage you can earn a lot of money even with very little invested money. But it’s best to avoid trading forex with low capital. Check with your broker if they will let you open an account using the little money that you do have.

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