Choosing The Top Online Broker

Before choosing an online top Forex broker to assist you and in order to make money as quickly as possible in online trading, you should determine which online broker is the best one in the market in which you want to trade and who matches your particular trading tendencies. In determining which brokerage to choose, consider the following information to learn more how to choose the best Forex brokers in the world.

Regulation

It is extremely important when trading foreign currency that you choose currencies from countries in which financial trading is monitored by a regulatory agency of that country’s government. When choosing a top Forex broker, make sure you get one who is based in a country where financial markets are overseen by a regulatory agency.

Trading Platforms

Another important thing to consider is the diversity in trading platforms of the online Forex broker you’re considering. It is also very important to make sure that the broker’s trading platform doesn’t frequently crash or freeze, especially in response to global economic events, a time in which traders need the most stability.

Customer Support

Another important thing to consider when choosing a Forex broker is the quality of their support services. Online Forex trading is conducted 24 hours a day every day and good Forex brokerage support services should likewise be available at any time on any day. Also consider what medium the broker’s support services use…is support conducted through email or can you chat online or speak by phone to a live person and, most importantly, do they offer support in your language?

Fees or Commissions

The three different commission structures used by online Forex brokers are

(1) fixed spread

(2) variable spread

(3) commission based on a percentage of the spread

The “spread” is the difference between the buying and selling prices and is usually calculated in “pips,” which measure the amount of fluctuation in the exchange rate for a pair of currencies. Some brokers call ECN brokers who charge fixed or variable spreads also charge a small commission

Account Types and Lot Sizes

Most online Forex brokers offer several types of accounts. One is a free online Demo trading account which can be used to familiarize yourself with online Forex trading. When you are ready to start trading, an actual trading account can be opened which will allow you to trade foreign currencies for real and start making money.

Real trading accounts are either micro accounts, mini accounts or standard accounts, depending on the number of lots traded. A lot consisting of 1,000 units is a micro lot; a

lot consisting of 10,000 lots is a mini lot; and a lot consisting of 100,000 units is a standard lot.

Some brokerages and companies offer managed Forex accounts service, In these type of trading accounts you don’t need to trade yourself and professional managers will managed your account.

Currency Pairs

Since trading more pairs of currency units increases the chances of making a profit, you want to be sure your online Fx broker provides all the currency pairings possible. Many brokers also trade valuable elements like gold and silver, as well as oil and other commodities, including currency products like CAD and AUD, whose dollar exchange rates can be influenced by variations in commodity prices.

Margin Call and Leverage Policies

In currency trading, a broker’s margin call and leverage policy have a large impact on your trading strategy to make money.

A forex broker issues a margin call when the equity in a margin account falls below a certain level, which is calculated by the FX broker using a formula created by the Forex broker. When a broker issues a margin call, the investor is required to deposit additional funds (in the form of money or securities) in order to bring the margin account up to the broker’s minimum maintenance margin.

When margin requirements are not met by the investor’s current equity, some brokers follow the first in first out (FIFO) method to close trading and others use the last in first out (LIFO) method, while others simply close all the trades.

Brokers provide leverage in trading accounts and have varying leverage policies, depending on the Fx broker. A leverage of 1:400 means that you can buy or sell a currency that is 400 times greater than the amount of funds you have in your account at that particular time.

Best Forex brokers in the United Kingdom and Australia provide leverage of 1:400 and Fx brokers in the United States provide maximum leverage of 1:100.

Before choosing the best Forex broker for currency trading, be sure to consider the brokers’ margin call and leverage policies.

Mobile Trading

Many Fx traders need to access the Forex market and their trading accounts using their mobile phones. Many brokers provide mobile services that include SMS and other kinds of market alerts, so if this important to you, make sure the broker you are considering offers such services.

If you want to open a trading account, but still have questions or uncertainties about foreign exchange brokers or markets, contact our professional team of Foreign exchange investors by phone or contact form and we will be happy to assist you with your questions regarding the foreign exchange market or any other financial investment market. Our experts are familiar with Fx brokers all over the world, so call us to find the best Fx brokers firms in the U.S., U.K., Australia, Asia, Europe, China, Singapore, India or the Middle East.