Finmax forex strategies offers very low spreads because their platforms can tap into a huge pool of liquidity providers. You should also look at slippage which occurs when your order is filled at a different price than what you are expecting. These are the vital factors which you will need to delve in when making your list of forex brokers. Additional questions which you can also ask are: Do the brokers offer user friendly platforms such as finmax? Hopefully, if they are successful they can then aspire to trade on mini or standard accounts.
A more normal type of forex broker trading account requires a larger deposit; $500 – $1000 for example. Ideally, avoid the forex trading broker offering a mini account, as these tend to have reduced functionality. Such as leverage – usually the currency broker is not mainstream or well-know, fully regulate and compliant or even 100% transparent.
Trading Software Platforms – Forex charts, real-time quotes, trend graphs, exposure, profit/loss, required margins, open positions and much more. Are all accessed through the trading software platform provided by your chosen forex broker. Ensure you find out what trading software is being use by the forex broker before you commit.
Using Leverage – A common feature with a forex broker, leverage enables the trader to use a credit system, to maximize profits. The FX broker provides a temporary “loan”, which allows the trader to purchase the much bigger trades – which (assuming a positive outcome), produces equally large profits.
Spread Prices – Your chosen FX broker will earn their money on what is know as the forex spread. Very simply, the spread is the difference between the Buy and the Sell price, of the currency pair in question. A season investor will looking for a small spread – as a logical view is that a small spread offers a greater potential for profit. In order to earn a profit from a various spread, the market must move substantially in the favour of the market trader. Your research into finding a suitable currency broker will tell you which spreads are offered for creating an account.
Technical Support – Most forex trading brokers will also have a presales department, live chat or call-me-back functions. So it should be easy to pose some questions in order to evaluate their effectiveness.
Demo Account – Before basing a decision from the above points mentioned. A beginner trader should find a forex broker that offers a free demo account. Keep in mind that not all brokers offer demo accounts for practicing. But finding one that does makes all the difference. Not forgetting a beginner trader has the opportunity to familiarize themselves with the various trading conditions.
All point mentioned here are important and should considered when looking for a forex broker. But always keep a look out for smaller incentives that may come up whilst doing your search. At the end of the day there is nothing wrong with signing up with several different forex brokers and taking advantage of the various offers available.
This way you learn if your FX broker can aid you to become a successful trader in the long run.