The broker is the man who will serve as a link between you and the market; he is the one that provides you with leverage so that you can control large sums with smaller amounts of money. Therefore, finding a good broker and setting up a brokerage account are vital steps. Here is a ten-point guide that will be of immense value in helping you find the best broker.
1. What is the Minimum Investment Requirement?
The minimum investment requirement varies from one broker to another. Earlier traders needed to invest a minimum of $10,000 to $50,000 or more to trade. However, with mini and micro accounts traders can start with investments as low as $25. Make sure that the minimum investment requirement of the broker with whom you are planning to work goes well with your investment plans.
You might find a lot of brokers who support your investment plans. The broker you trade with should have clients whose account sizes are similar to yours. This ensures that the broker’s services are suitable for you.
2. Support, Availability and Market Access
Make sure that your broker provides a 24-hour access to the FOREX market. Almost all brokers provide a 24-hour access. Learn how good their support services are and how efficient they are in resolving technical issues.
3. What Currency Pairs are supported?
The broker you would work with must support all the currency pairs you want to trade. Beginners need to make sure that all the major currency pairs are supported. The seven major currencies are the USD, EUR, JPY, GBP, CHF, CAD, and AUD.
4.Are there Charting and Alert Services?
The services provided by the broker are very important. Make sure the broker provides charts and indicators necessary. It is great if the broker also has a news alert service. For an experienced trader, these services might not make a big difference as they might already have subscribed to charting and news alert services.
5. Is the Software Compatible?
Understand the software platform the broker is using. Make sure that your broker allows you to test the software with a demo account. A broker that lets you test from a demo account for an unlimited period of time is ideal. Testing might take longer than expected if you are planning to use the software in multiple systems.
See Part 2 for the remaining 5 points.
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