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Your broker
is only there to help you transact your orders and make sure
your account runs smoothly – they should NOT give trading
recommendations.
Many novice
traders think this is a good idea and their broker knows
best, however if he could make money trading he wouldn’t be
a broker! Brokers are
there to transact orders and that’s all. If you don’t
take responsibility for your trading you won’t win.
2. Look for
tight spreads
This is your
cost of doing business and the less you pay the more of your
profits you get to keep.
Look for
spreads from your forex broker of 3 – 5 pips for trading the
majors.
There should
be no other commissions or fees - make sure the spread is
all you pay.
3. Leverage
Look fro
leverage of at least 200:1, although many brokers will offer
you more and some go as high as 400:1.
4. Trading
platform
Check it out
and see how useable and reliable it is and that you get 24
hour support, if you need it at anytime for any problems you
may encounter - not all brokers offer 24 hour service so
beware.
5. Ease of
funding and minimum investment
Today, many
forex brokers will let you fund an account online with as
little as a $100.00.
If you are a
novice starting small is a good way to get your feet wet.
These
companies also allow small minimum trades.
If there are
online payment facilities, you can fund your account quickly
and equally get your profits back quickly.
6.
Guaranteed stops
If you are a
novice trader and worried about the unlimited liability that
margin trading presents, you may want to guarantee your stop
and there are many brokers who will provide this comfort for
a fee.
7. Extras
A forex
broker is not there to give you trading advice but it is
nice to get extras such as demo accounts, free newsletters,
reports and other educational material, which can help you
improve your trading – You will find many brokers who offer
a lot of extras and if you are new to trading they are well
worth having.
Your forex
broker is important and if they provide all of the above in
terms of service, you should be able to maximize your
trading experience and profitability.
by Kelly Price
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