Choosing A Forex Broker
With currency trading becoming ever more popular, the number of brokers is growing at a rapid rate. What should one look at when deciding which broker to open an account with? These are the important points to consider.SpreadBecause currencies, unlike futures and stocks, are not traded through a central exchange, the spread can be different depending on the broker you use, so it's well worth checking a few out before you open an account. Most forex brokers publish live or delayed prices on their websites so you can compare spreads, but check if the spread is fixed or variable. A fixed spread means exactly that - it will always be the same no matter what time of day or night it is. Some brokers use a variable spread, which might appear to be nice and small when the market is quiet, but when things get busy they can widen the spread which means the market must move more in your favor before you start to make a profit.
Fixed spreads are generally slightly wider than the variable spreads are when at their narrowest, but over the long term fixed can be safer.ExecutionSome brokers will show live prices on their trading platform, but will they honor them when it comes to pushing the Buy or Sell button? The best way to find out is to open a demo account and give them a test drive. This will also give you the opportunity to see what the speed of execution is like - when you want to buy, you want to buy now, not sit around waiting for ten minutes whilst your order is confirmed! Trading PlatformGood trading software will show live prices that you can actually trade at, not just indicative quotes. It will offer Limit and Stop orders, and ideally will let you attach these to your entry order. One-Cancels-Other orders are another useful feature - they mean you can set up your trade and then leave the software to get on with it. And the most important feature of all - can you actually understand the platform? Having all the bells and whistles is of no use if you can't use them, so again, get a demo account and give it a go.SupportForex is a 24 hour market, so your broker should offer 24 hour support.
You might not be trading at 3am, but that could be what time it is in your brokers head office on the other side of the planet, so make sure there will be somebody there to pick up the phone if things go wrong. You should also check if you can close positions over the phone - essential in case your PC or internet connection crash at a critical moment.BackingFinally, before opening an account do a little homework and find out about the company. Forex brokers are regulated, but that doesn't mean they all have equal backing. If the market collapses, you want to know that they've got the reserves to cope with it and will still be around when you decide to withdraw your cash. If a broker is elusive when it comes to questions about their parentage and financial backing, then steer clear.In ConclusionChoosing a forex broker isn't difficult, but don't rush the decision.
Check out a few, and always get a demo account first to make sure you're happy with the way everything works before sending off your opening balance..
Geoff Turnbull is a full time day trader, and a contributor to http://www.forexheaven.comForex basics: make money with money, part 1
FOREX or The Foreign Exchange market refers to an international exchange market where simultaneous buying of one currency and selling of another is done. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). It is one of the most unique markets of the world because it is almost free from all the external controls and secondly it has largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day, that is 30 times larger than the combined volume of all U.S. equity markets.
Buying and selling of currencies is basically for two reasons. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.
The other 95% is trading for profit, or speculation.
The FX market is considered an Over The Counter (OTC) or 'interbank' market, due...
Forex > Forex basics: make money with money, part 1
New Forum to Provide Currency Traders with a Unique Opportunity to Learn from Professional Forex Trading Experts
New Zealand (ContentDesk) (ContentDesk) September 29, 2005 -- Foreign exchange trading website Go Forex has launched an interactive forum designed to provide new and experienced currency traders with an opportunity to seek free and professional advice from a panel of forex trading experts.Users will be able to log in and submit their questions on forex related topics in one of four separate forums to four resident experts. The forums cover beginners' forex questions, money management and trading psychology, technical analysis and fundamental analysis.The experts come from a wide range of backgrounds each with their own particular expertise in a certain aspect of forex trading. Dirk du Toit, Steve Pickering, Abe Cofnas and Duane Archer will provide free and professional forex advice on the forums.Mr du Toit, also known as DrForex by the vibrant online forex trading community, stresses the need for a strong foundation before entering the foreign exchange market. "If you start FX wrong...
New Forum to Provide Currency Traders with a Unique Opportunity to Learn from Professional Forex Trading Experts
Forex > New Forum to Provide Currency Traders with a Unique Opportunity to Learn from Professional Forex Trading Experts
TraderMetrics Virtual Forex Game Provider Looking for a Strategic Partner
Copenhagen, Denmark (ContentDesk) December 21, 2005 -- In the light of the recently announced deal where financial broking company IFX has bought into FX Player, Forex Trader Mentor (www.forextradermentor.com), a similar provider of virtual or 'fantasy' forex software is looking for a strategic partner. "People in the on-line forex trading community are waking up to the fact that there is a synergy between trading and entertainment" Says Steve Pickering, operator of TraderMetrics. "Trading forex, especially in the virtual market-maker concept provided by the TraderMetrics simulation software, has much in common with playing poker on-line, but is deeper, more intellectual and more challenging". By de-coupling from the actual market and using the dynamics of a virtual order-driven market, 'virtual traders' have to get involved with the game of bluff that goes on between two traders on the one hand, and the rest of the market...
TraderMetrics Virtual Forex Game Provider Looking for a Strategic Partner
Forex > TraderMetrics Virtual Forex Game Provider Looking for a Strategic Partner
MoneyFOREX.com Launched New Trading Instruments; CFDs, Commodities, Indices and Forex Currency
New York, NY (ContentDesk) May 3, 2006 -- MoneyForex Financial Ltd.(www.MoneyForex.com) is one of the world leading online currency forex trading broker and market maker launched CFDs and indices as the new trading products in its trading platform "MoneyForex Trader."With the rise in demand for commodity trading especially spot gold and silver, MoneyForex added the instruments to its trading platform to provides traders additional investment and hedging tools to minimize risks. Other new instruments added are S&P 500 index, Nasdaq index, Dow Jones index and crude oil."With clients from more than 100 countries, we receive hundreds of emails requesting us to offer commodities to our platform. Recently with the rise in gold and silver prices, traders are looking for ways to hedge or speculate on the commodities just to make a quick gain. The price of gold has been hitting history new high and we are looking at $700/oz by year end....
MoneyFOREX.com Launched New Trading Instruments; CFDs, Commodities, Indices and Forex Currency
Forex > MoneyFOREX.com Launched New Trading Instruments; CFDs, Commodities, Indices and Forex Currency