After a long and hard work on a demo account you were able to gain a certain security in your forex skills. Before you start trading in the foreign exchange market should open an account with a broker. A broker is an individual or company who executes orders at the discretion of the customer or dealer. Brokers earn through commissions or fees for their services, or the difference between buying and selling prices. In simple words, the broker is our access point to go out on the world’s largest stock exchange. Brokers are available to us over the Internet from anywhere on the planet, on their website we can open your forex account (forex account), in order reintroduced a certain amount of money and we can start with a grocery store and through our computer. Broker, simply, there is a lot on the internet and on them should pay special attention! Each broker offers something more or less than the other, opt for a broker who is, above all, reliable as far as deposits and withdrawals, a broker that corresponded to the strategy with which you are accessing the aggressive forex market.
When choosing a forex broker find out where the regulatory agencies registered.
In the US, the broker should be registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC) and must be a member of the NFA. CFTC and NFA have been established to protect merchants from fraud, manipulation, etc … Each broker can verify CFTC registration and NFA membership status as well as his disciplinary history at the phone number or by checking the NFA Web site among the registered companies look for only those with clean regulatory records and good financial indicators.
Forex is a market that is active 24 hours a day, from Sunday 11pm to Friday 11pm. During his work every broker should also have a 24 hour support in the form of a support. One way to check a broker is that whether they support on their website always in the service and whether any problem of which speed you can get any answer to your question. You should also pay attention to whether the people in their support in qualified to provide any answers. Here are timely and accurate information appreciates.
The trading platform (Online Trading Platform) is a very important segment for each trader. Some traders corresponds to a kind of platform, some other more practical .With most brokers is the most common MT4 platform.
The Forex market is extremely fast and you will need timely information (in seconds) in order to make quick decisions when it comes to trading. Be sure you have to make sure you have a fast internet connection (ADSL, WLAN, HSDPA). If you do not, do not try to trade. Dial-up is absolutely not responsible for the forex trading.
The registration can be divided into three parts:
- Select the type of account
- Account activation
Types of accounts
We distinguish a couple of types of orders, and they are as follows:
Forex Standard account – is a common forex account. These orders are intended for traders with a lot of experience on the forex market who are willing to invest from $ 1000 and up. With a standard account to a working professionals, so if you’re in all this still a novice, we recommend that you open this kind of task.
Forex mini account is a mini forex account. Depending on the broker, you can open a mini account with deposit more than one dollar. Usually the condition of opening these types of accounts depositing a few hundred bucks. It’s a great way to get started and test your trading skills, as well as to gain experience, although very often serve only to enrich a broker, because of the small margin, and therefore frequent margin calls.
As forex broker today more and more, competition forces them to forex dealers provide the most favorable conditions, so that you can very often meet with forex brokers who have very little initial investment, and some will and donate some money to the name of an additional bonus to you was found to begin with, just to get to the house opened the account.
Forex Micro account is micro forex account. Some forex brokers micro orders are those in which the money you invested is not counted in dollars or euros, but in cents. Insert, for example, $10 and you will have to account 1000 cents. This is great for beginners because they can trade real money, and you feel like you are working with big numbers.
When opening your account, you will need to fill in the forms in which you need to enter your information such as name, address, city and state of residence. It is not uncommon for a broker ask you to scan any of your personal documents (Passport, driver’s license or identity card) and to send them to their corresponding e-mail. They need this to protect themselves in case of some malfeasance that may be able to commit some of their clients.
Once you have all this before you can get e-mail from the broker with all the instructions on how to download a program or their platform that you need to trade, and there will be, among other things, contain the data on your user name and password, as well as ways You can donate money. Before choosing an online forex broker, you need to thoroughly investigate the possibilities and rules of the respective broker and by that means the following:
First available number of currency pairs to trade: you should know that every broker must offer trading with a minimum of seven major currencies, namely (EUR, USD, CHF, GBP, CAD, JPY, AUD). Eight currency with which most commonly traded (USD, EUR, JPY, GBP, CHF, CAD, AUD and NZD) are called the major currencies. All other currencies are called minor or small currencies. Do not worry about small currencies, they are there for professionals. Essentially at this site we will mainly consider the five most liquid and therefore most currencies such as USD, EUR, JPY, GBP and CHF.
- The cost of transactions: calculated in pips. What is the number of faucets less per trade by the broker (spread), the greater the profit for the trader. If you compare multiple brokers, you will see that each has a different spread on each currency pair. It is preferable to choose one broker that has the smallest spread, to your earnings at each store was higher.
- Minimum requirements margins: the smaller the margin requirements for increasing the potential for higher profits and losses. Percentage margins ranging from 25% and up. Low requirements for margin is excellent if your trading success.
- The requirements for minimum size of trading: the size of trading with one lot may differ from broker to broker (1,000, 10,000 and 100,000 units).
- Overnight Interest (rollover, swap): determines the difference between the interest rate of the country of the base currency and interest rates other countries. The higher the interest rate differential between the two currencies in the currency pair, the greater the overnight interest rate that will be charged.
- Interest rates on accounts with margin: Most brokers pay interest on merchant accounts with margin. Interest rates normally vary depending on the currency in which the deposit is made. If you opt for an extended break from trading, the money in your margin account will collect interest. It should be borne in mind that most brokers do not allow the collection of interest, unless your minimum required margin is not at least 2% (lever in relation 50: 1).
- Trading Hours: almost all brokers equalize their hours so as to coincide with the hours of global forex market- by time in Serbia, that is the time from Sunday to Friday 23.00h 23.00h, but for accurate information about working hours are consult with your broker.
- Free charts and technical analysis: Choose a broker that gives you the best charts and technical analysis. Find a broker that offers free professional services and all necessary assistance to make your trading was successful.
- Automatic execution of your order: this function is very important when you choose a forex broker. Do not choose a broker who changes the price (re-quote) after you’ve already clicked or a company that allows you to “slide” price. This is very important when trading.
Forex Broker Conclusion
It was explained the steps how to choose the best broker. Broker xm.com offers 30 USD for free opening real account. It has a positive experience of working with him. It is desirable to have 0.01 lot. Deposits may be less than 100 USD. It is mentioned in this text. Broker gives us a favor for taking place (market access, guaranteeing payment, servers, software, technical support…) for the earnings of spread. Broker must be attractive for traders who want to trade.