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Main Advice For Forex Beginners When Choosing A Company

  • July 18, 2018
  • By Nick Vincent
  • 0 Comments
Main Advice For Forex Beginners When Choosing A Company

Novice Forex traders go into Forex business with one specific aim which is to make profits. The Forex Market is the most liquid global market with more than five trillion dollars traded every day.  But, gaining profit trading the Forex market is not as simple as it appears. To trade Forex, you require a Forex broker. There are many Forex brokers, but not every one of them is reputable. When selecting a Forex broker, select a company that uses an effective trading platform, one that is certified by a regulating authority.

You can follow these five tips on how to choose a Forex company:

Consider Your Needs

Before you settle with a Forex broker, consider these tips to ensure you get a suitable broker:

  •    Are you planning to trade a great deal or little? Trade minimal moves, or make significant trading steps? If you want to day trade a lot and capture small price movements, your best bet is an ECN broker.
  •    To trade with scalping strategy, you will need an ECN broker.
  •    Check the amount of investment capital you have.
  •    Select a proven FX broker in 2018 and account type that matches your capital.
  •    Check the ease of making deposit and from your account and choose a broker that fulfils your trading needs.

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 Examine the offerings of your Forex broker

As soon as you determine your needs, check out that the broker offers the following features:

  •    No “dealing desk.” If you are a day trader, your best bet is to relate directly with the market, and not transferring your order to a trading desk which then starts it off in the market. That consumes huge amount of time and could results in re-quotes. So, stay away from it!
  •    Ensure that your chosen Forex-broker is in a country that has a well established financial system that regulates your Broker.
  •    You are a day trader, so insist on competitive spreads.
  •    You also want a broker that is available when you need them. As a result, open a demo account, email the Forex brokers lots of questions, and monitor how fast they respond. If the customer service is not great, forget about that broker.

Be Cautious of “reviews left by Losing Traders”

Watch out for discussion forums and written reviews about Forex brokers that interests you.  Majority of Forex forums are not reliable sources, therefore, be cautious.

Seek out what Traders and other people say about brokers. However, maintain objectivity.

Test the Forex Company yourself

Your potential brokers’ list ought to be getting smaller now. But with a lot of unreliable information out there, do not make a decision yet, better test the brokers.

  •    Start by opening a demo account and investigate the trading conditions. Your orders need to execute instantly. Check that the Forex company offers tight spreads and that the platform doesn’t crash repetitively.
  •    If the demo is good for couple of weeks, open a live account with a part of planned investment capital.
  •    Trade the live account with your part deposit for roughly two weeks. During this time, keep testing customer support.
  •    Try to withdraw some of the funds in your account. You have to pay a few dollars, but it will help you to know that you can easily withdraw your funds.
  •    If everything is okay after that, you can make additional deposit into your Forex account and start trading.

Stay away from “Bonuses”

When you open a live account, it is better tell the broker that you are not interested in the bonuses they may offer.

If you accept the bonus, it may hinder your ability to make withdrawals. State clearly in your email to the Forex broker that you are not interested in any bonuses offered.

Conclusion: Main advice for Forex beginners from the USA, while choosing a Forex company.

Determine what your needs are first and come up with few US Forex brokers that meet your criteria.

Your target must be to get regulated US brokers https://topbrokers.com/forex-brokers-for-usa-traders who provide competitive spreads and good customer support. Carry out your research online, try out the FX broker with a minimal first deposit on the United States of America, and try to withdraw your fund. If everything works fine, you can start trading with your complete trading balance.

 

By Nick Vincent, July 18, 2018
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