Forex Broker - 6 Tips on Choosing the Best Forex Broker For Trading Success!

By Josh Koopman

Forex broker is an agent that does trading on your behalf. As such, the collect some commission everytime you make a trade no matter if you're making losses or earnings. So, here are a few points to consider when you're choosing a forex broker.

Reputation

Reputation of a broker usually exceeds them and it's easy to see who makes money and who are experienced. In this case, you can check their record to see whether they are consistent in forex trading. In this part you should do a thorough check because it is important to see who you have as your broker.

Broker regulations

As been said before, determining which broker you want includes checking their profiles. One way to do this is by checking with Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission(CTFC) and a member of the National Futures Association(NFA). Find a broker that has a squeaky clean record and save yourself from worrying while making your trades.

Reasonable Deposit

One way of choosing a broker is by looking at initial deposit that they ask. Initial deposit is not needed as it is not for investment purposes, but just to pay the broker in case they're not paid during the course of investment. The ideal payment should be between $200 to $500 depending on the market movement.

Good software

A good software should be simple, easy to use and at the same time is clear on the investment that you're making. If you are new to forex trading, your broker should be able to let you trade on a demo account. A demo account works the same as a real software but it gives you the opportunity to test it before you actually make your first real trade.

Variety of Currency Pairs

Every good broker should be involved in different currency pairs and that makes them offer a lot of selections. So, choose at least a broker that has currency pairs that you are most interested in. Remember that every currency pairs have their own patterns in the market.

Customer support

With every currency pairs that you trade in, its actually different across the whole world. Therefore, you won't want to call a broker who is sleeping half a world away when you want to make your trade. Therefore, it is vital to have a broker who can take your orders anytime you want. Try to contact the customer service desk and see how they respond to your questions regarding forex trading. Make sure you're comfortable as these guys are who you entrust your money with.

Therefore, make sure you do enough homework regarding the aspects above before you really proceed into the forex market!

What's the next step for your online Forex Trading success after choosing the right broker?

Go to http://www.eforextrading.info now, and get the latest Forex trading tips, advices and information from the professional traders!

Article Source: http://EzineArticles.com/?expert=Josh_Koopman

10 Top Reasons Why Most People Are Into Online Forex Trading

It is no longer news that the Foreign Exchange market, also referred to as the "Forex" or "Spot FX" is the largest financial market in the world. It is more than three times the total amount of the stocks and futures markets traded in the New York Stock market. So, there is no doubt Forex is a Money Maker!!!

Though this market rocks and highly profitable but at the same time highly risky. What a Paradox you would say. Because you're not trading anything physical, this kind of trading can be confusing. The Forex market is considered an over-the-counter (OTC), due to the fact that the entire market is run electronically, continuously over a 24-hour period.

However, because of the advent of Internet Technology, Online Forex Brokerage firms now have the capability to offer trading account to 'retail' traders like you and I. It's so simple! All you need to get started is a computer, a high speed-internet connection, and skills of how it works.

There are several advantageous reasons to trading Forex. Here are just a few reasons why so many are choosing this market, and why you should consider making "FOREX" a friend:

Ø No Commissions: No clearing fees, no exchange fees, no government fees, no brokerage fees.

Ø No Middlemen: Forex trading eliminates the middlemen, and allows you to trade directly with the market via your computer with internet connection.

Ø No Fixed Lot Size: Unlike futures markets, Forex allows you to determine your own lot size. This allows petty traders to participate with accounts as small as $200.

Ø Low transaction Costs: The retail transaction cost (spread) is less than 0.1 percent under normal market conditions. It is even lower when the deal is large.

Ø Flexibility. Because of 24-hour trading participants of the foreign exchange market would not wait to react on some events, as this happens on other markets (for example: stock markets). On other markets you simply can be late if you have to wait till morning to show your reaction, as in the morning the event will be already in the price, greatly differ from the desired level.

Ø No one can corner the market: The Forex market is so huge and has millions of participants that no single entity can control the market price for long period of time.

Ø Leverage: Leverage gives a trader the ability to make nice profits and at the same time keep risk capital to a minimum. For example, Forex brokers offer 100 to 1 leverage, this means that a $100 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $1,000 dollars, one could trade with $100,000 dollars and so on.

Ø High Liquidity: Forex is the largest financial market in the world, with the equivalent of over 3-4 trillion changing hands daily when the volume on the stock markets is only 500 billions of dollars.Forex market is very enormous and extremely liquid. With a click of a mouse you can instantaneously buy and sell at will. You are never "stuck" in a trade. You can never set your online trading platform to automatically close a trade at your desired profit level (a take profit order), and/or close a trade if a trade is going against you (a stop loss order).

Ø Free "Demo" Accounts: Most onlineForex brokers offer "demo" accounts to practice trading. A Demo account is an account given to you to practice and perfect your trading skills before opening a live account and risking your real money. The difference between the Demo account and the real live account is that in the former you can only trade with the money give to you but can not withdraw from it and also it involves no risk.

Ø Low Start-up Capital: You would think that getting started as a forex trader would cost a whole lots of money, like trading stocks, option or future, it doesn't. With just $250 or less you can open a forex account depending on the broker. This makes Forex much more accessible to the average person who doesn't have a lot of start-up trading capital.

I hope have been able to convince you on why you should consider making Online Forex Trading your friend and another source of income (if you have any at all). Welcome to the Future of another wonderful Home Base Business.

To Online Business Success
Seyi Tony.

Seyi Tony is an Internet Entrepreneur who derives pleasure in revealing to people how they can really unlock the goldmine in internet businesses.He is currently running a blog that reveals various legitimate and lucrative internet businesses.Check out his blog on http://www.onlinerichesexpo.com and Download Free and Wonderful Materials

Article Source: http://EzineArticles.com/?expert=Seyi_Tony