Which Forex Broker should I use?
A forex broker is an individual or a company that acts as a middle man between a buyer and a seller. The brokers are required to have a licence (definitely avoid any broker who is not registered) and they do not charge a commission. Instead they make their money from the difference between what the buyer pays for the currency and what the seller receives for the sale of that currency. This is known as the spread.
A good forex broker will provide both training and assistance alongside the actual trade itself. Trading the forex in the most basic terms is as simple as buying low and selling high, thus making a profit after you have paid the spread to the broker, but reality is a lot more complicated than that. This is why it is essential that a new or very inexperience trader should look out for a broker who offers the training and support. It is also important that they also be involved in sites such as 2 be an online trader, a good forex education is worth its weight in gold.
There are a number of other things a trader needs to look at when considering which forex broker to use. As this hopefully will be a long term relationship it’s important to get it right.
1. Just how much is the spread that the broker will take on your chosen currency pairs? Shop around as these will vary from one broker to the next. If you have a trading plan that is suited to a give currency pair, make sure your potential broker offers you a low spread to trade that pair.
2. The software package the broker is providing you for making the trades with. Some traders will prefer one type of software and chose a broker who provides that. Most traders will tell you the software they use is the best and maybe for them they are right but each trader will consider different software qualities more important than others. I guess it all comes down to personal preference and if a particular package works for you then, that would be the best. One quick point on this though please make sure that what they are offering you is of a sufficient speed for you to be able to open and close your trades as you want. Here speed is important.
3. The tools and information the broker makes available to you. There are so many helpful tools out there which are designed to help the trader and although the tools themselves should not take over from a well-considered trading plan they will add to the whole experience. There are a whole host of indicators that are now available to the trader, all of which are explained
4. The length of time the forex broker has been operating. This is for two obvious reasons, the longer they have been in business the more experienced they will be and the more reliable as well. If they have stood the test of time and are still in business, then they must be doing something right, right?
5. Saving the best to last, the quality of the instruction and help that the broker offers. A good forex education is the most important start that any trader will make to his trading career. I cannot stress to you enough how important this is. It’s the reason we started this site in the first place, and a trader never stops learning either. You might have heard of the expression ”you can’t teach an old dog new tricks?” Well a trader cannot afford such sentiment. A good trader will always be learning from his/her fellow traders and from the currency market itself. The market is always involving and so must a trader also.
It is easy to guess at which way the market might be heading. Let’s face it, the market at any given time will only ever move in one of three defections, up, down or sideways. It is however much better to be able to make an informed decision as to which way the market will be going, based on research and a good trading plan. Much better for your sanity and much, much better for your bank account. A good forex broker will provide you with help to do that. This is why when choosing which broker you will be trading with it is good to take your time. Do not rush into a relationship until you are happy that they meet most if not all of the five conditions set out above.
We will soon be publishing one of the most full and exhaustive list of brokers that you will be able to find on the internet, so watch this space.
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I have always found people amazing who can speak several different languages and being English of course it has been easier as many people from all around the world want speak to speak English as it is one of the international languages. However if you would like to use a broker who speaks your own language I hope you will be able to find one here that could help you with that.
Please remember however that it is still very important that the broker still fulfils the criteria set out above.
Forex brokers sorted by the language their site is written in, please click the links below...
Please feel free to post a comment here to help other traders understand which Forex brokers are the best ones. This after all is just a list of the brokers available, we at 2 Be An Online Trader could never have the time to experience them all, just compiling the list was very time consuming in its own. This is why we are looking to fellow traders input to validate the good ones. Please spend a little time to give something back…
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