Without any doubt, selecting the right and proper forex broker is truly the roller coaster adventure for each new forex trader. Besides, for taking this process to be less traumatic, it is quite necessary to really check for some particular features that actually separate one reputable and experienced forex broke from one trouble maker. Thus you should ask yourself one important question – is your forex broker really worth trading with?
First of all, let’s talk about regulation. In fact, in the majority of cases, some regulated forex broker is your best and most proper choice. Well, existing regulation authorities definitely are – CFTA or commodity futures trading association, NFA or national futures association, SAEC or securities and exchange commission and many others as well. For sure, regulated forex broker hasn’t any reason for hiding this and so you are going to be really able to find proper regulated authority on the main page of the web site of the forex broker. But in case when you are obviously not able to find this page somewhere on the web site, then most of all, this forex broker is definitely not regulated one.
But what about the lot size. In fact, some flexible lot size certainly gives to the forex trader some chance for trying out all available kinds of strategies. But not every forex broker is so generous. And those ones that actually offer some mini account together with some standard ones are definitely a good and proper choice. But why particularly these mini accounts are so useful and helpful? Well, those mini accounts are surely great and wonderful for new forex traders that actually switch from the demo trading to some real staff. So whilst you certainly trade with only the lowest existing chances to lose a big amount of money, you obviously have your chance for testing your main trading strategies on the real forex market. And after that you are all the time able to move on and also to upgrade to your standard account and thus trade some bigger amounts of money.
And now let’s mention leverage. In fact, with the majority of forex brokers, you are actually going to be presented with some certain leverage options that are starting from one to fifty and finishing one to five hundreds. But it is necessary for you to keep in your mind that quite high leverage is really not so advisable according to the fact that despite your ability to make big money, there is much higher risk as well to fall all your way down to nothing.
And finally – spread. For sure, a good forex broker definitely should not offer those spreads which swing higher than five pips on the majors.
Surely not a single piece of knowledge can be rock solid guarantee against losses, in particular on Forex, but sometimes even one Forex books can save you much money.