Choosing the Forex broker to work with is probably the most important decision you will be making in your own trading career. Choosing the right Forex broker can be an intimidating task for anyone, especially amateurs who do not have the proper guidelines in choosing the Forex broker. Here are the four things that you need to remember when choosing a Forex broker:
1.) Account Limitations
Of course, this is the first thing that you need to check when choosing a Forex broker. You do not want to participate as a large trader with a minimum of $ 100,000 initial investment if you only have $ 1,000 in your account. Always choose the broker that will allow you to trade regardless of your invested amount. These are the three common levels of investors:
– Micro Trading Account starts with a $ 250 initial investment
– Standard Trading Account starts with a $ 10,000 initial investment
– Large Trading Account starts with a $ 100,000 initial investment.
Always choose the trader that will allow you to use all your resources and will let you trade with the lowest amounts possible.
This is the term used to determine the difference between the buy and sell of a currency. If you want to have the highest profits possible for your trades, choose the one that offers the lowest spreads. This will help you minimize the amount to spend and maximize the profits to take from certain trades.
If you are having problems with your trading account, it will be better if you have the ability to contact the broker. Having a live helpdesk will allow you to contact them anytime, and they will be able to help you get rid of the problems you are experiencing. This may come in handy especially for amteur traders who are not familiar with the rules and regulations of a Forex broker.
It is the term used to determine the number of the times you can multiply your investment in order to purchase a lot. Fore example, if a broker offers 300: 1 leverage, then you can purchase $ 300 worth of lots for only $ 1. If you want to have the highest return of investment, choose the broker that offers the highest leverage possible. This will allow you to participate in trades, with higher investments regardless of your initial invested amounts.