Before you start trading you obviously need to open an account with a forex broker. A broker is a company that buys and sells orders according to the trader's decisions.
Generally, brokers earn from commissions or by the interests of their service.
There are really a lot of brokers! Select one requires a bit of research and time to spend on analyzing various offers as well as read up on the opinions of other traders for that particular broker.
When choosing a brokerage socità you need to find a regulatory agency which is registered.
In the United States a broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and NFA member. The CFTC and NFA exist to prevent fraud and manipulation broker abusive.
You can verify CFTC and NFA of a company and know its history seeking information about the broker on their website: NFA.
It' 's recommended to stay away from non-registered broker.
Customer Service
The forex market is open 24 hours on 24 so it is a requirement that the holder be present at any time. The quality of support can vary drastically from broker to broker so make sure before signing up to be optimal.
This is a good method: contact the help desk by various brokers. look how velocemnte answer questions and with that quality. If you do not have a quick answer to a question is not a good sign.
Now we come to the most important thing: the brokers allow you to trade online just plain pretty.
The key thing about a broker is definitely the time to execute a market order. Even the software is very important.
Before you invest so use for a long period of time a demo account.
The broker must show currency prices in real time, a summary of the account that shows the current capital losses and winnings, margin and open positions.
Many platforms are created in java or a program installed on your computer (eg metatrader). The advantages of online broker platform is that there is no need to install anything and you can access from any computer with an Internet connection.
Limit the trading platforms installed only to your computer, but are often faster though not always fit all operating systems.
Other two key elements that traders are requested to rate: fast Internet connection and a good computer.
Every broker should show the prices in real time and allow us to enter and exit from the market velocemnte. This is the minimum that a broker has to offer, additional packages are sometimes offered for a fee by the broker.
Almost everyone now offer charts and technical analysis including platform.
Mini Account
Many brokers offer the ability to open a mini account from $ 300 (or even less ...) and perhaps is best for beginners.
Terms
Before making the decision must carefully examine the contract and the conditions, this includes:
- Cross present: at least 7 major (AUD, CAD, CHF, EUR, GBP, JPY, USD).
- Transaction costs that are calculated in pips. The lower the spread the greater the profits that can be made. In general on eur / usd, the spread is 2 pips, but you can also find less and is definitely better.
- Required Margin: the smaller the margin required greater the potential for profit and loss. Low margins are great when things are going well but you can not say the same thing when you lose.
- Minimum to open positions: the amount of a location can vary from broker to broker, it is important to open positions very small (Micro-) if you do not have capital levels.
- Rollover or Swap: these fees are determined by the difference between the interest rate and uses the other countries. More interest rates differ greater the rollover.
- Interests: many brokers pay interest on the capital invested at the rate present in their country. In your account may therefore be credited with interest.
- Timetable: It is important that they are open from 5:00 pm EST on Sunday until 4:00 pm EST on Friday.
Printed on the conditions to make sure they are changed.
Do not choose the first broker that happens, you make the choice carefully, the lost time will pay off if you make the right choice.
In short you have to be careful:
- Low spreads
- Possibility of mini-accounts
- Instant execution of orders
- Free graphics and analysis
- Lever set
