Before you start trading the forex, you need a Forex Broker. There is
a myriad of online brokers to choose from. There are many Forex Brokers
around the world, from the United States, Europe, Asia and even
Africa! The secret to successful trading is born from the choice of
brokers, especially if you are a beginner trader. When choosing a Forex
broker, you need to know some basic features of Broker, also depending
on the type of trading that privilege.
The relationship with your Broker must be based on trust and good quality services. There are many different forex brokers, all claiming to be the best, and to make a decision is often not easy.
However there are some standard criteria that should be known to compare and choose the best forex broker adapted to their trading needs
SPREAD
This is a parameter that is dear to many forex traders. The feeling is that each operator of a lower spread is the best choice, while the broker increasingly seem to think otherwise. Well, the truth is that the spread is not as important as you think it is.
What really is important is that the spread is fixed and does not change!
A change in the number of pips in spread when you least expect could be disastrous for your trading strategy. Imagine being in the middle of a trade and you placed your stop loss at 5 points from your entry, suddenly there is a sharp movement of prices and before you know your stop loss has already been hit.
Therefore it is important to have a fixed spread to schedule a forex strategy that increases your chances of profit.
SPEED 'OF EXECUTION
Another important parameter to consider is the speed of execution of orders. A broker that offers an instant execution is very important as you want to take the price that you closed your order on, waiting a few seconds is acceptable, but more than 20 seconds is unacceptable.
Then, in order to maximize profit potential you need a Forex Broker to grant a leverage of about 200:1 . This is the ideal leverage a Forex broker should have, however, there are some levers Broker offering much higher, reaching up to 1:500 , and exposing your trading risks more ..
Of course, you should not pay for additional costs or commissions to brokers in addition to the spread, which is the only real gain from the broker. We should avoid those brokers that charge brokerage fees, in addition to the spread, unless it is an ECN broker .
In the end, a successful career in forex trading is determined by combining the best forex broker for your trading needs, and a winning strateg
The relationship with your Broker must be based on trust and good quality services. There are many different forex brokers, all claiming to be the best, and to make a decision is often not easy.
However there are some standard criteria that should be known to compare and choose the best forex broker adapted to their trading needs
SPREAD
This is a parameter that is dear to many forex traders. The feeling is that each operator of a lower spread is the best choice, while the broker increasingly seem to think otherwise. Well, the truth is that the spread is not as important as you think it is.
What really is important is that the spread is fixed and does not change!
A change in the number of pips in spread when you least expect could be disastrous for your trading strategy. Imagine being in the middle of a trade and you placed your stop loss at 5 points from your entry, suddenly there is a sharp movement of prices and before you know your stop loss has already been hit.
Therefore it is important to have a fixed spread to schedule a forex strategy that increases your chances of profit.
SPEED 'OF EXECUTION
Another important parameter to consider is the speed of execution of orders. A broker that offers an instant execution is very important as you want to take the price that you closed your order on, waiting a few seconds is acceptable, but more than 20 seconds is unacceptable.
Then, in order to maximize profit potential you need a Forex Broker to grant a leverage of about 200:1 . This is the ideal leverage a Forex broker should have, however, there are some levers Broker offering much higher, reaching up to 1:500 , and exposing your trading risks more ..
Of course, you should not pay for additional costs or commissions to brokers in addition to the spread, which is the only real gain from the broker. We should avoid those brokers that charge brokerage fees, in addition to the spread, unless it is an ECN broker .
In the end, a successful career in forex trading is determined by combining the best forex broker for your trading needs, and a winning strateg
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