There are almost thousands of registered Forex brokerage firms that are trying to gain an edge in the Forex market. As a Forex investor, what do you need to know when choosing a Forex brokerage firm that will meet your needs and make a reliable and trustworthy business partner? Here is a list of vital points to keep in mind if you want to work with the best Forex brokerage company.
- The value of the spread offered by the currency firm – “Spread” is basically the difference between the purchase price and the sale price of a certain currency pair. If you choose a firm that is known to give the best spreads, it will save you money. Most FX brokerage firms give spreads of 4 to 5 points when a trader trades regular currency pairs. The best brokerage firm you can settle for should offer spreads of 3 to 5 points for regular currency pairs.
- Minimum account opening amount – If you are new to Forex trading or do not yet have a lot of money to invest, you may be interested in staying at a firm that will allow you a small minimum amount to start working with your Forex account. A firm that will allow you a minimum account opening balance of $ 200 should be your choice.
- Speed of execution of orders – The speed of order fulfillment is very important in Forex trading. The faster the currency broker executes orders, the better you work with him. Instant order fulfillment means that the price you see and click is the same as the one you receive, it should not be violated.
- Features technical analysis and graphs – These tools are very important in Forex trading. You will need to find a Forex brokerage firm that will give you these tools to help you conduct successful Forex trading for free. If your brokerage firm FX does not offer such tools, you will be trading in a very sensitive market blindly. The best Forex tools are even the ones that allow traders to trade on charts directly.
- Hedging – The brokerage company FX must have a system that has the ability to trade on the same currency in both directions, if there are discoveries without eliminating or increasing their margins.
- Demo account – Finally, set up a company that has a realistic and full-featured demo account. The realistic part means that the Forex brokerage system should allow the trader to practice with a demo account that matches his abilities and reach.