Now that you have decided to venture into the Forex market to make a decent income out of your investment, it would be very important for you to consider some factors before selecting your preferred broker that you would be dealing with
Your success or failure as a trader is dependent on the kind of forex brokerage firm you are dealing with
One major factor you should consider before choosing a particular broker is their spread. The spread is the difference between the bid and ask price for a particular currency pair. The latest currency quotes for all currency pairs are usually displayed on the various broker’s websites.
Different brokers charge different spreads on the platform with average spread ranging between 1 – 5 pips; what you should know is that the higher the spread charged by the broker, the farther it takes for your open trade to enter into profits and the lower the spread, the nearer it takes for your open trades to enter into profit territory with such broker.
This is so because the broker deducts their spreads once you open a trade on their platform, irrespective of the outcome of your trading, the brokers deduct their spread from the various trades you place on their platform. That is the reason every trade placed in metatrader forex always start from negative profits.
Other critical factors you must consider before choosing a broker is the trading lots, account types and leverage applied by the respective broker.
Most brokers offers different types of trading accounts mostly called micro account, mini account, standard accounts, PAMM accounts, Islamic accounts and so on. You need to understand the various account types offered by these brokers before investing your funds with them.
Other factors may include if a particular broker offers demo accounts options. It is very important for a forex trader to practice trading on the broker’s platform before going live with that broker. Most brokers allow demo trading on their platform.
Other sundry options worth considering are the payment options offered by the broker, the more flexible payment options available, the better for a trader.
Some brokers also offer deposit bonus for traders, rebate commissions and trader bonus. These are important you may need to consider before registering with any forex broker.