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1. The Top Three Things You Must Look For When Selecting Forex Brokers
One essential requirement that you must have when starting currency trading is an account with a
Forex broker. It’s difficult enough to try to trade profitably but trying to find and choose the best forex
brokers can be a nightmare. The forex broker is your bridge that connects you to the live currency
exchange markets and they provide you with the necessary leverage to trade along the big dogs.
In this article, I will give you some pointers and crucial things that you need to look for when choosing
a forex broker that is right for you.
The Top Three Things You Must Look For When Selecting Forex Brokers

2. The Top Three Things You Must Look For When Selecting Forex Brokers
Dependability
One of the most essential requirements that you need on a forex broker is dependability. You need a broker that is
trustworthy and will not suddenly close shop and vanish with your funds. You need to choose a broker that is regulated in
the country where the broker is headquartered and doing business. For example, in the United States, you need to find
forex brokers that are regulated by the CFTC and the NFA, and in the United Kingdom, the FSA. When you visit the
regulatory agency’s website, you can check to see if that particular forex broker has a history of complaints against them.
Obviously, another important consideration is the dependability and reliability of the trading platform used by the broker.
The trading platform is the software that connects your home computer to the live currency exchange markets and allows
you to place trades via the internet. Most brokers offer a demo account that you can download and test for yourself. You
can also do a Google search on the internet and look for reviews and feedbacks from traders about their experience with
the broker and the platform. You’ll want to steer clear of a forex broker if it has a long history of complaints from
unsatisfied clients.
The Top Three Things You Must Look For When Selecting Forex Brokers

3. The Top Three Things You Must Look For When Selecting Forex Brokers
Fees and Spreads
Most Forex brokers make money by adding a spread to your trades, which is the difference in
pips between the sell and buy price on a currency pair. When your trade has a high spread, it
can make the difference between closing the trade with a profit or a loss.
The spread is usually between 1 and 3 pips but most forex brokers will raise the spreads
during high impact news releases. You need to find a broker that offers low spreads on the
major currency pairs and also make sure that they don’t overcharge you during news
announcements, unless you don’t plan to enter trades during these times.
The Top Three Things You Must Look For When Selecting Forex Brokers

4. The Top Three Things You Must Look For When Selecting Forex Brokers
Margin and Leverage
A very crucial benefit is the amount of margin forex
brokers can offer. The higher the leverage the more
margin you have to trade; opening more trades, and
having the ability to make more profits, or losses
using the same amount of money.
There is a big difference between a broker that
offers a margin of 50:1 leverage to another broker
that can offer you a 200:1 leverage. In the United
States all forex brokers are legally limited to offer up
to 50:1 leverage, whereas brokers located in other
countries can offer an unlimited amount of leverage.
Although, it is usually better selecting a broker
offering a higher leverage, it could sometimes work
against you like a double-edge knife. For example, if
the currency in one of your trades moves in the
opposite direction, the leverage will greatly amplify
your potential losses.
Finding the best forex brokers is not an easy task
and can take some time. Please take my above
recommendations and always try a demo account
before you deposit money into a new forex broker
account. You cannot control the forex market, but
you can improve your chances of success by
selecting a good forex broker.
The Top Three Things You Must Look For When Selecting Forex Brokers