One of the first parameters to choose the right forex broker is about their withdrawal processing, is it fast or very slowly. If fast and it happens with consistent so that forex broker is good. And the other parameter is about forex spreads. Is forex broker spreads have widening spreads until three times or even four times when market have a high volatile price? usually this happen on the big news, if yes so that forex broker is not good. But, on this article, i’ve tested some forex broker that have a good parameters beside withdrawal processing aspect, their honest forex spreads, and many others things that we should aware about our money. So, test with your self about my suggestion to trade with a good forex brokers below.
Forex brokers are the necessary link to forex market, so once you decide to become a trader, you are doomed to long process of selecting the broker that not only suits you best, but doesn’t scam its’ traders. Almost every day, a new forex broker is being born online. With the abundant variety of features and services promised, the trick is to find a broker that you can actually trust. All of them claim to be the best, and making the right decision is not an easy task. When choosing a broker, which characteristics you should look for and compare? What are ways to build a reliable relationship with a broker? How can you ensure the security much needed in forex trading?
One of the most important factors that determine a forex trader’s success is the broker(s) he or she chooses to do business with. There are many aspects to consider when choosing between the many forex brokers out there, some of which are difficult to find out until you have traded real money with them, at which point it may be too late. In this section, we give you that information up-front, with no bias. Our forex broker reviews are written after doing extensive testing of the brokers’ forex platform and trading conditions, using real-money accounts. You will not find this type of information anywhere else. We hope it helps you make an informed decision on who you can trust with your money, and which forex brokers are best suited to you and your trading style.
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Recommended Forex Brokers :
Each forex broker offers spreads (the so-called difference between the selling and the buying prices of a selected currency pair). The basic rule is – the lower the spread is, the better. However, for forex brokers the situation is reversed; since they get their commissions from spread, a higher spread is definitely better for any broker.
So, where is the comfort line where broker doesn’t feel underpaid and a trader doesn’t feel cheated? Generally, an excepted spread among traders doesn’t go over 5 pips. Anything that goes beyond that is suspicious and should be avoided.
On top of that, fixed spreads is your best option. The last thing a trader wants to see is a change in pip spread when you least expect it. So, bear in mind that some forex brokers have variable spreads, meaning that during busy market hours the spread goes so wide, that the only time you could actually profit is when the market goes bullish.
What happens otherwise? Here is a perfect scenario – in the middle of your highly-planned and seemingly profitable trade where you have placed stop loss at, let’s say 6 pips from your trading entry, the charts go wild and your loss has been reached within a blink of an eye. While you are shocked and unrealistically shaken up, the price goes back to the point of origin!
Solution to this disaster is simple – keep switching forex brokers until you find the one where unexpected stop loss hit dissolve. Once you find a decent broker, your chance of successful trade increases dramatically.
Moving on! Let’s examine forex broker’s available payment methods and hidden charges for withdrawing your account funds. Not all brokers charge, however some consider their transaction services worth a fee. On top of that, deposits and withdrawals have to be processed in a fast and smooth manner, meaning your forex broker should provide a secure online transaction and accept not only bank transfers, but also Paypal, Moneybookers or similar online payment services.
Speaking of withdrawal, once you which to get your money out of the account, there shouldn’t be any weird activity at all. And by weird, I mean a request for minimum amount of funds in your account at all times, or a lengthy authorization process or even a possibility of getting your account banned. Of course, this is extreme, and most brokers provide reliable services with acceptable terms and conditions. However, while you search for the perfect broker, it is wise to know what kind of beast might be luring on the net!
Next issue is leverage options. Leverage can be your best friend until it turns to your worst enemy! Surely to maximize your potential earnings, a broker with 200:1 leverage is the ideal option. How should you feel about higher leverage, such as, for example, 400:1? It is luring, however keep in mind that with 200:1 leverage a loss is just a slip… with 400:1 leverage the same fall is a suicide.
Regulated forex brokers are definitely much more reliable and stable. After all, there is a watchful eye of the regulating authority. Most registered forex brokers mention their regulator on the website. If, however, this information is unavailable for some reason, make sure to contact your broker and find out who is in charge.
Of course, regulation is not everything. Reputation among other traders is a very important fact. To find out what other traders think about a selected forex broker, try searching for forex broker reviews. There are sites that provide detailed broker reviews; you can also search forums and blog posts about the selected broker. Not everything written is reliable; however these forex broker reviews should give you some idea of other traders’ experiences.
Another overlooked issue is the speed with which your trading order is filled. Imagine having all set and you finally see the right moment to trade. The only thing that keeps you from profiting is the forex broker that doesn’t process your order within seconds. If there is noticeable and uncomfortable delay, move on to the next broker until you find the one that is actually worth the commissions you pay!
Lastly, your forex trading professionalism relies on a combination of three ingredients – you, good forex broker and forex market itself. You cannot control forex market, however to ensure your success, you can control the learning process and the selection of a broker. By eliminating laziness and a bad choice of forex broker, you forex career is destined to be a smooth ride 😉
So, here Conclusion
By taking the time and effort to do some initial research, you will be able to choose a reliable forex broker. This might just save you a lot of stress and troubles you may encounter if you were to choose any old forex broker.
There are many brokers out there to choose from so, it is worth while doing some initial research before choosing a forex broker. Some things to look out for when choosing a forex broker include:
The spread is the main way forex brokers generate their profits. The spread is the difference between the price at which you can buy a currency, and the price at which it can be sold at any particular point in time. When looking for a broker, keep an eye out on their spread costs. The less the spread, the more money you will save and the faster you will be making a profit in a trade.
Quality registered institution
In the United States, forex brokers should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) _http://www.cftc.gov. They should also be a member of the National Futures Association. You can verify the brokers CFTC registration and NFA membership status at _http://www.nfa.futures.org/basicnet/. If the broker is not backed up by a reliable institution, don’t bother with them it’s not worth the risk.
A wide range of leverage options
Leverage is needed to trade currencies due to the fact that price movements are only fractions of a cent. In general, leverage is expressed as a ratio between the amount of capital you provide to the amount a forex broker will lend you. For example, take the example of the ratio of 200:1. What this means is that the forex broker will lend you 200 times the amount of money you provide. Just keep in mind the more leverage you use, the more risk there is in getting a margin call, however you also have the potential for larger profits and vice-versa. In general, when starting out with a small amount of capital, make sure that the forex broker you are using offers a wide range of leverage options. This will give you more control over the risk exposure you should be prepared to take.
A wide range of tools
The majority of the larger forex brokers offer a range of trading tools to their clients. Most brokers can provide you with real-time currency prices along with other various tools. Ensure that your forex broker provides all the tools you need to trade successfully. Other tools could include:
o Real-time currency price charting
o Technical analysis tools
o Fundamental analysis commentaries
o Economic calendars
The good forex brokers offer two or more types of accounts. For example the smallest account size is known as a mini account. Mini accounts require you to provide at least say $500, and with that you are offered a high amount of leverage. Leverage is required to profit from such small amounts of trading capital. Standard accounts also have a minimum capital requirement, usually somewhere between $1,000 and $2,000. In the end it’s important to choose a broker that has the right leverage and services that suit your needs to go with the amount of capital you have dedicated to trading the currency market.
Forex is a 24-hour market; therefore 24-hour support is essential. Can you contact the firm by phone, email, chat, etc? Do the customer support representatives seem to know what their on about? The quality of customer support can vary considerably from broker to broker, so be sure to check it out before opening an account.
One thing you could do is contact a number of forex brokers to get a feel of how quickly they can respond to enquiries. If they don’t respond quickly, and with a reasonable answer don’t give them your business.
It’s a good idea to talk to other forex traders in an effort to find out who are the better forex brokers out there. As in any industry or business, there are some dodgy ones. Forex brokers are no exception. There are many forums on the internet these days that are dedicated to discussing all areas of forex trading, including the discussion of forex brokers. These are great resources you can use allowing you to find some valuable information that could just save you being ripped off by some unscrupulous forex brokers.