THE CURRENCY TRADER’S BLOG
Who exactly is a broker? A broker is a person or a company that purchases and sells orders according the investor’s decisions in the market. Brokers earn money by charging a commission or a fee for their services to the customers. These brokers are also called Forex Mentor who helps and suggests investor as to which trade they should put in the market according to the market situations. Traders should make sure that they go to safe and qualified broker. They can get to know the criteria of a good broker by attending Forex seminars takes place in UK, US and other parts of the world.
Some of the important criteria to select the Forex Mentor are:
• A FOREX broker needs to be connected with a big financial institution such as a bank in order to provide the funds necessary for margin trading.
• Consult friends and associates to know who they are dealing with and find if they have any complaints or difficulties in dealing with a particular broker.
• Traders can select few online brokers and contact their Internet help desks to see how fast they react to enquiries and regardless of whether they answer questions to your satisfaction.
• Customer satisfaction and safety are important also. You want to find a dealer who executes trades quickly and with minimum slippage. All online brokers should offer automatic execution and have clear policies regarding slippage.
• Traders should know the fees involved in the trades. What is the spread? Is spread fixed or variable according to the account type? Are mini accounts subject to extensive spreads? Are there some other charges?
• Margin accounts are the soul of FOREX trading, traders should make sure they understand the broker’s margin terms before setting up an account.
• Trading software is very essential for the online FOREX trader. Before selecting the broker make sure that they have demo account. Above all, traders look for reliability and the ability to perform well in volatile markets.
Some more information which traders should look for in brokers is their policy regarding minimum account balances, payment of interest on account balances, which currency pairs can be traded and whether a non-standard sized lots can be traded or not.
With ever rising currency trading, the number of brokers is growing at a rapid rate. Traders should be careful while choosing the Forex broker for them. They can learn the parameters in the Forex trading courses in UK, US or any part of the world. They can also learn Forex trading online. What are the criteria which traders should keep in mind while selecting the Forex broker:-
In Forex, there is no commission paid to the brokers. They earn their profit by applying the spread on the trades. The spread can be different on different trades depending on the broker you use, so it’s well worth checking a few out before you open an account. There are two types of spreads- fixed & variable. Traders can learn what fixed and variable spread in detail is while they learn Forex trading online.
The best way to find that is the brokers are reflecting the live prices on the trading account is to open a demo account and give them a try. This will also give traders the opportunity to check the speed of execution of trades. What are the best ways to execute trade? you can learn them in Forex trading courses.
Good trading platforms will show live prices on which traders can trade. The platform will offer Limit and Stop orders to place in the market and ideally will let traders attach these to their entry order. The platform should be fast, shows real time prices and automatic.
Forex is a round the clock market, so the broker you choose should offer a 24 hour support. You never know when you will feel the need of the broker. It might be related with trades all the time, but also regarding several other things like payment, knowing the market status etc.
Choosing a Forex broker to trade with isn’t difficult, but traders should not rush the decision. They should check out a few brokers and get a demo account first to make sure that there are all the services which you need in trading.
Forex traders look for profit in buying currencies low and selling them at high price. This sort of trading has turned out to be more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web with which the Forex traders can learn Forex trading onlineand can alsounderstand easy Forex strategies. Despite the fact of these information available online, there are many myths about foreign exchange market.
(1)Forex is a trick. A few cynics and frustrated merchants surmise that Forex is only some new prevailing fashion to trick individuals for their well deserved cash. Despite the fact that there are many tricks that are taking cover behind the “brand” of Forex, that doesn’t imply that the Forex itself is a trick.
(2)”I have to precisely foresee the market result to be productive in Forex.” There is no logical technique to know something ahead of time in the market with a 100% conviction. There would be no Forex showcase in the event that you could know the correct money rates previously.
(3)”I have to utilize an exceptionally complex system to be effective in Forex.” It’s a common misconception, in which many on-line dealers would need you to accept. The principle prerequisite to be fruitful in Forex is a self-restraint and cash administration.
(4)”I need a ton of beginning money to get benefit in Forex.” Big capital venture won’t help you in Forex. You needn’t bother with a considerable measure of cash to enhance in monetary standards and you can’t move the coin rates with your exchanging orders.
(5)Forex is betting on the grounds that it’s totally irregular. In spite of the fact that there is no conviction in Forex it doesn’t imply that it’s totally irregular. What’s more, it’s unquestionably not a betting, since your accomplishment in this market depends for the most part on your abilities and experience, not on your good fortune.
Information is power — so it’s better for you to take in recognizing some cliché myths from the genuine article. Traders should learn easy Forex techniques before diving into the market. They can learn Forex trading online or by joining Forex courses in UK.