To operate in the currency market, you need to open an account at a reputable and reputable firm. The following information will provide you with the necessary tools to keep in mind when choosing a Forex broker.
Low Spread - The difference between "bid" (the value received when you sell), and "ask" (the value you pay when you buy), is called "spread or spread" and is represented by PIPs. PIPs represent the minimum unit in the change in the value of a currency. In other words, the PIP represents the minimum changing value in a currency pair. For example, a PIP for the USD / CAD pair is $ 0.001. A low spread or spread means a greater benefit for you, since the cost to acquire or sell currencies would be lower. In other words, with a low Spread, you would pay a lower commission.
If your broker is not in the United States, find out who regulates the activity. Europe, Canada, Hong Kong and Australia have adequate regulations, and capital requirements are high. If your company is located in a third world country, the current regulations may not be adequate. You might wonder why a firm would be established where the existing regulation is not adequate enough to protect me? Could it be that the company is not very respectable?
A solid and respectable broker - if your broker is in the United States, you could verify your agent's net worth by accessing www.cftc.gov/marketreports/financialdataforfcms/index.htm. The greater the firm's capital, exceeding the minimum of $ 5 million, the greater the protection of its funds.
To determine the vitality of a broker, you should look at the number of employees it has. If it is a solid and respectable organization, it will have hundreds of employees, who can assist you 24 hours a day. They also likely have hundreds of thousands of accounts. In a firm where the number of employees is limited, it is unlikely that there is a significant level of capitalization, or that they will be able to provide you with the personal assistance you need.
Registered Broker - Make sure your broker is registered with the Futures Commission Merchant (FCM at http://www.fcm.gov), which is regulated by the United States Commodity Futures Trading Commission (CFTC at http: // ctfc.gov). Information on registered brokers can be found on the CFTC website.
Greater Leverage - Leverage is a double-edged sword. It can help you make considerable profits, as it can also cause you huge losses. Therefore, as Forex traders, we use leverage to make substantial profits using the Winning Edge technique. Making profits through limited capital is very difficult, even when you are correcting the trend in the currency market. That is why you need a broker to provide you with leverage so that you can effectively trade in the foreign exchange market. Naturally, greater leverage means better opportunities for you. Some brokers offer 100: 1 leverage, which means that for every dollar in your account, you can borrow and use up to $ 100.Other brokers offer up to 250: 1. Therefore, when choosing a broker, take into account the leverage it offers, since this could be your ally to win big.
Types of accounts - A broker can offer you different types of accounts. Generally, “Mini” accounts require a minimum margin or equity that could be $ 250 and up. With this type of account, you can trade forex but the level of leverage is lower. There is another type of account called “Standard”, which requires a minimum of $ 2000. This type of forex account allows you to open larger positions. Of course, a "Premium" account will enable you to open even higher positions.
Real-time information - Many Forex brokers offer real-time information through the use of platforms. This could save you money if you receive real-time information through paid subscriptions.
Charting Tools - A considerable number of Forex brokers make technical analyzes and provide information regarding economic indicators. Some of this information may not be very useful to you when operating. To use the Winning Edge Forex System technique, you must use a trading platform. The indicators of the Winning Edge Forex System were developed to be used through a platform. To operate using the Winning Edge Forex System technique, you need a Trade Station or Trading Platform.
Avoid so-called Snipers or Hunters brokers - These brokers often buy or sell based on preset points. They usually perform these maneuvers to increase their profits, avoid these types of runners. However, to know who these brokers are, you must be in communication and interact with other operators online or through forums.
Don't pay commissions for Spot
Forex traders do not pay commissions for placing orders, unlike those that operate in futures markets. In reality, a Forex broker is a mere intermediary, and not a broker or agent per se; therefore, it does not pay any cost in the execution of orders. As mentioned above, they make profit through the Spread, this is the difference between the value of the "bid" and the "ask".
