Forex Broker Comparisons

Forex brokers are companies or institutions that offer a range of forex services like management of forex accounts and execution of orders. A trader needs to be very careful while choosing a broker.

There are many websites that help new traders compare and choose a broker that can provide the services they need. There are many factors depending on how one compares the broker’s criteria for points like what is the minimum deposit required, maximum leverage, spread of major currencies, commissions charged, number of pairs offered, and are mini accounts available?

Minimum deposits required varies from company to company, and can range anywhere from $100 to $10,000. Leverage is the ratio of the money present in the account of the trader to the amount that opened the account. The allowed leverage makes a big difference while trading in the real market. The difference between sell quote and buy quote is known as spread. Sell quote is the price at which the base currency can be sold, and the buy quote is the price at which it can be bought.

Some brokers choose not to charge commissions. This must be determined before signing up with a broker. The past performance of the broker and the word of mouth from other traders must also be considered. A trader must compare the services offered by the broker. Constant updates and newsletters on market trends are services that must be provided to you by the broker. The reliability of the broker is of utmost importance. Many brokers insure their customer’s funds against any mishap. Also, the margin requirement or the deposit required for opening or maintaining a position must be checked. For small time investors, many brokers offer mini forex accounts. This is another area of comparison.

Source by Eddie Tobey

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