Things You'll Need:
- Good broker
-
Step 1
What FX currency pairs does the broker have available? Make sure they have the forex pair that you like to trade.
Some only have a few currency pairs, other forex brokers have a huge range of choices. If you only want to trade the major currency pairs, this shouldn't be a problem for you. If you like trading pairs that have good volume look at FX brokers with broader offerings. Some brokers even offer non-forex products,stocks,futures,options on the same trading platform. Make sure you check their commission schedule for them.
Can you use a downloaded forex trading platform, or do you need a web-based trading platform?
If you trade the markets from home or some other location, then you can install a trading platform like MetaTrader or Sierra charts. If you can't install software where you will be trading from, then look for a broker with a web-based forex trading platform. -
Step 2
If it's a market maker, how do their spreads compare with other brokerage remember spreads can change during news time.
Do you want a managed forex account they present a decent opportunity for those who don’t have the time to learn how to trade forex or enough time to actually trade their own forex account.A managed FX account can also open up investors to the threat of scam, incompetence, and bad brokers.
You will still want to see the brokers performance over an extended period, and to discuss risk management and their commission charges first. Some traders are capable of amazing returns 80% of the time. Can your forex broker compare to that -
Step 3
Does the broker provide a demo version for testing, or have a live demo running where everyone can see the trades or statement. Check on their margin requirements if you fall below a certain amount in your account .Check to see if they are regulated both government and private.
Do they offer free deposits and withdrawals most offer free deposits but some charge for withdrawals. -
Step 4
If you have enough money, try to open a small live account with several brokers. Then test them against each other.Watch the spreads during news times drawdown or slippage. Some brokers work better for some day trading styles. Other brokers work better with other longer term trading styles.
Check their about pages and see how long they have been in business, there are some who are not reputable and can take you money.
Comments
lucky05 said
on 6/1/2009 Hey thanks for all the tips. I could really understand it well but i ned to know are there any good forex brokers out there coz even after doing a lot of research i could only find only a few i.e http://www.indiaforex.com , http://www.4xindia.com
pearlyvictoria said
on 12/26/2008 I wish I had had this information earlier. Nicely done.
mizchulita said
on 12/26/2008 I have a friend who makes quite a bit of $$$ doing this! Looks like good advice!
mizchulita said
on 12/26/2008 I have a friend who makes quite a bit of $$$ doing this! Looks like good advice!