Factors To Consider While Choosing A FOREX Broker
Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)
With the increasing popularity of currency trading, stock investment and other kinds of online trading, more and more people are opting for this as a means of earning some extra cash. While it is one of the most effective ways of making extra money, you must be well aware of all the tricks and techniques of the trade in order to function effectively. And in order to achieve the expected profits it is important to work with an experienced broker and choosing the right broker is not that easy always. So, here are some essential factors that you must consider –
- Trading Platform – Trading platform is one of the most important factor that you must consider while choosing a FOREX broker. It is customary for good trading software to show live prices that you can actually trade at instead of indicative range of quotes. It will give an option to “limit and stop’ your orders and you will also be able to attach these in your entry orders. Most importantly, you need to check out if you can understand all the features of the platform. Unless and until you can access all the facilities of the platform, it won’t be quite feasible for you to opt for that platform. Also check out if the platform offers ‘one cancels others’ option. This allows you to set up your trades and then allow the software to get on with it. Before opting for a particular platform, make sure you use a demo account to become familiar with all the features thoroughly.
- Support System – Like any other online trading, FOREX, too, is a 24 hour market and therefore it is compulsory that your broker offers you a 24X7 support. You might not be trading at 3 am in the morning, but that could be the working hours of the head office, located on the other side of the planet. Therefore make sure that someone will always be there to attend the phone calls in case anything goes wrong. Also check if you can check the status of your positions through your phone, in case there are some problems with your internet connection or PC.
- Spread – Since currencies are not traded through a central exchange, the spread might differ according to the different brokers. Therefore it is advisable to check out the rates with more than one broker before finalizing the deal with anyone. It is customary for the professional brokers to publish delayed or live prices and you can compare all the prices before selecting one. Also check if the price is fixed or variable – fixed spread means the amount will be exactly same, irrespective of the time or date, whereas variable spread is small when the market is quiet, and gets wider when things get busy. Fixed spreads are usually a little wider than the variable spreads, when they are narrowest; but fixed spread is considered to be safer in the long run.
So keep these factors in mind while choosing a Greek Forex Broker and always play safe.
Author’s Bio – Jacks has been a reputed blogger for the last ten years and he has a flare for writing on topics like Forex trading, online investment, currency trading etc.
