Jay Molina

Published on Apr 27, 2011

more>

forex strategy trading | how to choose the best online trading broker that fits your needs and that is going to allow you to trade the Forex effectively.

Transcript

1. By: Jay MolinaFrom: www.myfxventure.com

4 Tips on How to Choose the Best Online Trading Forex Brokers

2. Today I’m going to be explaining to you how to choose the best online trading broker that fits your needs and that is going to allow you to trade the Forex effectively.

Check a broker’s reputation and reviews

The Forex market is a great opportunity for any investor that is looking to make some serious money with very low risk and high potential of massive returns. However, you want to make sure that the broker of your choice is going to fit your trading style, investment capital and trading strategy. One of the best ways to evaluate a broker is by reading online trading reviews  from people that have used this broker before. Another good way to get to know a broker is by downloading the demo account and trading it for a while. The bottom line is that you need to make sure that the broker you choose is going to take care of you and your money, so don’t rush. Take your time to do the research and find the best broker for you.

3. Customer service and technical support

Trading the FX market can be one of the most rewarding experiences but at the same time you need to be able to react to unpredictable situations pretty quickly. This is why being able to reach your broker’s customer service is a must. Imagine this, you are trading the EURUSD and you need to get out of your trade and you can’t because your platform is frozen. This is a trading emergency and you should always be able to reach your broker to help you in a situation like this. As a result whichever broker you choose to do business with needs to have a reliable customer support service that you can reach at any time during trading hours.

4. Charting, Software, and trading tools

The quality features and extras of the software provided by your broker should be a high priority for you as a trader.  I’m going to summarize five things that you need to look for when choosing a trading platform:

Number 1: your broker must provide charting with highly reliable data.

Number 2: your broker should provide you with a high variety of currency pairs for you to trade.

Number 3: your broker must provide you with the indicators, templates, different chart types, and other necessary tools for effective trading.

Number 4: you need to ask your broker if there are any monthly fees for using their trading software. Tip: Most brokers offer a Metatrader 4 demo account for free.

Number 5: make sure that your trading strategy is compatible with the broker and their platform. Tip: trade your trading strategy on a demo account for several weeks before you open a live account.

5. Spreads, interest in the fine print

The spread has an incredible impact on the cost of your trading on the profitability of your strategy. It is very important for you to find a broker with very low spreads on the currency pairs that you trade the most. Interest is also a factor to consider when choosing a Forex broker. There are some brokers that charge you interest on your transactions that are held overnight, these interest charges can considerably jeopardize your results. Make sure to ask all the questions you need to ask before you put real money on the line. Last but not least, make sure to read the fine print in the contract that your broker will ask you to sign. Many times people will take advantage of the fact that most will not read the fine print and you will end up agreeing to things that you might not want to.

I hope this gives you a better idea of how to choose a Forex broker and how to find the best trading software and resources to take your trading to the next level. I will sharing a forex broker list with you very soon.

To your trading success,

Jay Molina

Professional Forex Trader & Educator