Forex Brokers for Beginners

Every Forex trader needs a Forex broker. Choosing a Forex broker is one of the most important parts of starting a career in Forex trading. While you can change brokers whenever you desire, it is still important to get the right broker for you, to avoid any hassles later down the line. Beginners aren’t going to require as much as more experienced Forex traders. Those who trade for a living and have lots of past experience in Forex trading should generally see more success with more advanced Forex brokers. However, if you are a beginner, you won’t want to go to a broker that is designed for a professionals. As a beginner, what you need is a broker that has a straightforward user-interface, with a strong customer service team and preferably lots of learning resources. You need a broker that will introduce you to the market for currencies in the most smoothest way possible, because Forex trading can be pretty daunting to the average beginner. The Forex broker you choose should be regulated, have fixed and reasonable spreads, have a clear and easy-to-use trading platform that you can at least learn to understand, have good customer support, offer a lower minimum deposit, provide leverage on demand and not charge any hidden fees at all. This might seem like quite a lot to research, but these are really only the basics. You can find all of the information you would ever need on a particular Forex broker by simply using internet search engines. If you cannot find an answer to something, you should be able to call them up and...

Changing Your Forex Broker

There might come a time when, as a Forex trader, you would like to change your Forex broker. Fortunately, changing your Forex broker is a pretty straightforward process. You might want to change your Forex broker for a number of different reasons, for example you might want to change from a long-term strategy to a day trading one. In this case, you might require lower spreads than your current broker, so you would change to a broker that offers lower spreads. Another example could be if you trade the news, because in this case you might want to move to another broker which can fill your orders faster, so that you don’t miss out on a short-term opportunity in times of great volatility. No matter what your reason, once you have found a new broker to change to, it’s just a matter of opening a new account. There’s actually no need to close your old account. If you had a bad experience with your current or past broker, you might then want to close your account and open a new account at your newly chosen Forex broker afterwards, but if you haven’t had a particularly bad experience you may as well leave your old account open. You are allowed to operate two accounts at a time. There are no rules against having multiple accounts at various brokers. In fact, you might well want to in order to take advantage of the various resources each broker can provide you with. Changing your Forex broker is as simple as leaving or closing your old account and opening an account with a...

Forex Brokers and High Spreads

Forex brokers need to make money and for most brokers, it is the spreads that are their most important source of revenue. However, some Forex brokers offer spreads that are particularly high and some brokers offer spreads that are simply too high to work with at all. A spread is the difference between a particular currency pair’s buy and sell prices. As you trade, your spreads are wider than they technically should be, because your Forex broker needs to allow room for some revenue. As you trade, you are technically bringing in revenue for your Forex broker, but don’t think they are stealing from you, because they aren’t. Spreads are just a way in which you can pay for your broker’s services. It is a good idea to shop around though. You shouldn’t go to a Forex broker simply due to the fact that they have lower spreads than their competitors, but it is a good idea to factor in spreads when choosing a Forex broker, because spreads will directly affect the extent of your profits and losses. High spreads should be avoided when trading currencies, especially if you are using a day trading strategy that involves lots of short-term trades. With a long-term trade, spreads won’t be too much of an issue. On the other hand, if you are scalping the Forex market for example, you will be aiming to make lots and lots of short-term gains which will require low spreads. If you are scalping with high spreads, it will be very hard for you to make a profit overall. When it comes to spreads, the lower...

Having More than One Forex Broker

Having more than one Forex broker is actually a good idea. There are many reasons why you should seriously consider opening multiple Forex trading accounts. A lot of Forex traders like to trade with a single broker, rather than having to login to various brokers’ trading platforms and having to get used to each brokers’ unique features. First off, you should open accounts with different Forex brokers because it will allow you to see which broker is best for you. Every broker is different and you can’t just go to the first one you see and hope for the best, nor can you choose the one you think is the best and hope that it truly is the best for you, because it might not be. By having multiple accounts, you will be able to find out which broker is truly the best for you as an individual Forex trader. By having more than one Forex broker, you will also be able to put different Forex trading strategies to work. Some Forex brokers will be better for day trading strategies like scalping, whereas other brokers might be more suitable for long-term trades. If you want to buy and hold some of your trades for longer, you might sign up to a Forex broker that can offer a better service for long-term traders. However, if you also want to day trade and the same broker’s spreads are too wide, you might then decide to have more than one Forex broker in order to allow you to use both Forex trading strategies effectively. There may also be other reasons why you...

How Forex Brokers Make Their Money

Forex traders usually only think about themselves and what they can do in order to make more money for themselves. This is understandable, however it is good to know how Forex brokers make their money, as you will be the one paying for their services as an individual Forex trader. It is your right to know where your money is in fact going. Forex brokers make their money in two different ways. The first way in which they make money is by taking a commission on every trade you place. ECN brokers will take a direct commission on each of your trades, however you will most likely be starting out with a market maker as a beginner and these brokers only take their commissions through the spreads. Market makers make their money by building their fees into the spreads that you will receive on your Forex trading platform. Spreads are relatively simple. They are the differences between the “ask” and “bid” prices of currencies. The ask price is the price at which Forex brokers are willing to sell a currency at, and the bid price is the price at which brokers are willing to buy a currency at. You don’t need to get into detail. As long as you go with a broker who offers fixed and reasonable spreads, you will have nothing to worry about. Forex brokers also make money by earning interest when you apply leverage to your trades. When you leverage your money, you essentially start controlling much greater amounts of capital. Since you are controlling more money, the Forex broker starts to earn more interest. This is...