Choosing a Forex Broker




Before trading Forex you need to set up an account with a Forex broker. So what exactly is a forex broker? A forex broker is a forex provider that you sign up with, in order to trade the forex market.


There are many forex brokers or providers, and unlike other types of trading, there is no one centralized market. Instead there are thousands of forex brokers or market makers as they’re also called, who set their own currency prices and spreads.


But because the forex market is competitive, there’s usually not a large enough difference in prices and spreads between different forex brokers to practice arbitrage. But every forex broker is slightly different, and you should check that the broker that you’re looking at will give you a good deal Visit Here to find Good Forex Deal and Forex Bonus.

Forex Trading Platforms / Forex Trading Software

Forex brokers will provide you with an online trading platform, downloaded to your computer and requiring you to log in with them when you trade, or as a totally online interface.


The best way to see if the platform is adequate is to run their forex demo account to see if you can do all of your trading tasks on their forex trading platform.


You’ll be looking at the currency charts, applying your system rules and indicators to assess the currencies you’re looking at, placing orders of various types for the spot forex market (market orders, stop orders and limit orders), and viewing your forex account details, including your leveraged float available for trading.


Most providers will provide forex charts as a part of their online trading platforms. However the quality of the charting packages may vary, so check that you can do essential things such as drawing lines, writing notes, and plotting indicators. That is, whatever you need to do to trade the system, and this does vary from system to system. Many forex charts will be able to do all this, but sometimes they are not. Some providers have up to 2-3 levels of charting available, but one level is free.


Whether you need to upgrade will depend on the indicators you need to draw for your system. So try their demo accounts out to be able to tell.

Using Forex Demo Accounts

A forex demo account is a virtual account that comes with play money that you can make virtual trades with. Forex demo accounts are free of charge and they are supposed to represent actual market conditions. Some forex brokers limit the forex demo account to 30 days of use. A good forex broker allows unlimited use of a forex demo account.


There are a lot of Forex Demo Accounts out there to choose from and you do have to do a little research sometimes to find the right Forex demo account to use as each one varies in complexity and the help that is available.  Another variable is how long you can operate your Forex demo account.


There are a just couple of other things to consider when choosing a Forex demo account and these are; size of the account, i.e practice money they give you, and whether they offer real time or close to real time rates.
I guess that all sounds a bit complicated but I can assure you that it really is not.


Using a Forex demo account is a GREAT way to dip your toe in the waters of Forex trading without completely taking the plunge or even worse, taking a bath!


With the right Forex demo account you could quickly grasp the essentials of Forex trading and gain confidence enough to open a live account and start trading for real and the best thing is that they are FREE!


So shop around and see which Forex demo accounts you find suit you best and start practicing and if you don’t find the Forex demo account that works for you then simply close it and find another Forex demo account and try that one out! Visit Here to find Best Forex Demo Accounts and Forex bonus

 

Regulation

The forex market is an unregulated market meaning there is no central exchange. However, forex brokers themselves are regulated. In the US they should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission(CTFC) and a member of the National Futures Association(NFA). You can verify a broker’s status with the NFA on the NFA web site. If you do not find the broker you are interested in listed with the NFA, look for another broker that is listed and has a clean record.

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