Have you been looking for the best foreign exchange brokers? There are some differences between brokers. Finding a good one can make the difference between success and failure with your forex trading business.
Here’s what to look for in the best foreign exchange brokers:
1) Stable. You will want to use best foreign exchange brokers that have been around for awhile. Don’t deposit money with a new company. It’s possible for these businesses to disappear along with your cash. New brokerage companies open up every week so be careful.
2) CFTC. The Commodity Futures Trading Commission is a governing body that monitors the best foreign exchange brokers. Although it is purely voluntary to join, it’s best that the broker is a member.
3) Trading Cost. The best foreign exchange brokers exist to make money. The way they do is through the currency pair spreads. The spread between the BID and ASK is typically 3 to 5 Pips. If a brokers spread is higher than this, it’s best to not use them.
4) Micro Lots. When you first start to trade the Foreign Exchange, you want to be conservative. Using small lots is the smart way to start out. Be sure you have this option.
5) Practice Account. It’s critical to practice trading and test software in an account that has fake money. Using your cash to do testing is not advisable.
6) Deposit Size. I suggest you start out with $500 in your trading account. Be sure the best foreign exchange brokers will allow this size of deposits. Some are as high as $25,000.
So there you have it. A few key points when considering the best foreign exchange brokers. So, go ahead and set up your account. Be sure before you start trading that you have a proven method that pulls consistent cash out of the Forex market!