1. Platform of trading: It is very important to choice a platform you’re comfortable with. Afterward, it’s up to you to find the one which suit you the most by testing some of them but I can give you some tips. First of all, evaluate the performance of the platform by testing the rapidity of execution of orders. Then, according to what you’re looking for, see if the platform is intuitive. Some platforms will do almost everything for you but adjustments are often fixed and it is impossible to modify them. On others like Metatrader 4, everything can be controlled. At the first look you will be maybe afraid, but with a little practice, you could do all modifications you want.
2. Account currency: According to the broker, your account currency will not be inevitably the currency of your country. Some brokers propose only USD. Do you accept to see your account in a foreign currency? Here again, it is a problem that’s own you.
3. Minimum deposit: For this section, this is your bank account which will answer for you. If you trade with important funds, all is open but if you don’t have much at your disposal, so you will have to find a broker that’s allow you to open an account with the few you have. Nevertheless be careful, even if some brokers offer you the possibility to open an account from 200 USD for example, this not inevitably a good idea. To trade on the Forex, with the important leverage at your disposal, few funds will limit you considerably in your trading strategy. Your position risk to be cut fastly if your trade goes in the wrong side. That’s why, you should take a look also to the minimum amount of transaction.
4. Bonus: No need to make long speeches, I trust you to find the good one ... I advise you to pay attention to special promotions of the various brokers that are usually valid for one month. Some will offer you for example to gain in real what you win on a 3-day demo account. Rather interesting ... a variable bonus depending on your performance.
5. Max leverage: Ah here we are! For many people this is what attracts them on the Forex. The leverage at your disposal is indeed very important and varies according to the broker. A leverage of 1:100 means that you can trade to 100 times the amount invested. So 100 USD gives you access to lots of 10 000 USD. But beware! Of course you can earn a lot of money but you can also lose a lot. Never use a leverage too high compared to the balance of your account or few seconds could be enough to cut both hands ...
6. Fees: There are two types of fees, one on withdrawals and the other on transactions. Most brokers do not charge for withdrawals. Some however make you pay transaction fees that are minor, but I guess you do not want to give your money to your broker.
7. The number of treatable pairs: If you want to trade only the major pairs, you will have no problem, all brokers offer them. In contrast, for less known pairs, you should check with the broker but the spread is obviously more important than on the major. On the other hand, some brokers offer you the possibility to trade metals, CFD’s and others (This is a few more that counts, especially if you plan to touch it a bit)
8. Fixed Spread: The brokers will offer two types of spreads, fixed and variable. Fixed spreads as their name suggests will not move and are undertaken by the broker regardless of market conditions. Indeed, in a news announcement, the market is extremely volatile and the spread can be huge. With the fixed spread, this will not happen. The compensation is that most often fixed spreads are higher than the variable spreads. Indeed, those operating in variable spread offer very small spreads in normal market conditions but may become very large in some cases. It’s up to you to make your choice.
9. Technical Support: All do not, but online support can be very useful. With some brokers, this help will be available on their website through a chat and others will have a phone call center. Then you could ask any questions you want. Brokers also offer you the opportunity to make your orders by phone.
10. Trailing stop: Trailing stop can be very useful. They allow you to not be all the time in front of your computer. After, some like and others not. If you want more details on the trailing stop, Trailing Stop.
11. Method of payment: it is a point that should not be addressed because the initial payment must be self sufficient ... All brokers offer wire. But again, being able to deposit funds via credit card or other is faster and easier.
Now that everything is said, I invite you to consult our brokers’ comparative table.
With Forex-Tribe you can also compare two Forex Brokers: Compare two Forex Brokers.
