The Best Forex Broker is a complete UNBIASED Guide to choosing the right broker according to your needs. I started trading forex 12 years ago, I made 100% everyday for 3 successive days, until I hit margin call in the fifth day. It was a great shock for me.
Margin Call: Occurs when the available balance in your Forex Trading account is not enough to open a new trade. This fully depends on your leverage and lot sizes opened.
I recognized that Forex is not an easy thing. Its not just a quick gamble. Its not Vegas The first thing I decided to do, was replacing my broker, as I was sure its not The Best Forex Broker. It provided almost zero support and spreads were very high. I don’t want you to repeat my mistakes! I will not write here about a certain broker and get your mind biased towards it. I will write about the most important criteria you must keep in mind while making your choice.
The Best Forex Broker MUST :
- Include all the currency pairs that you are willing to trade. Selected Forex Brokers provide up to 45 Forex Pairs to trade. Commodities are also available (Restrictions apply for some)
- Phone Support : My first Forex Broker didn’t provide any. They just had great sales representatives to drive me into loading more cash into my account
- Email Response : Some provide Turn-around times of less than 2 hours. If problem not solved, they just phone you instantly.
- Trading Spread : Compare the actual spreads of your frequently traded pairs. Don’t start with a broker until you are sure their spreads DO NOT rise to un-acceptable levels. For Example, the EUR/USD is typically around 2.6-3.0 pips.
- Trading Platform : During your demo period, test the platform a 100%, and see if its good for you or not? Is it easy to use? What about the Graphical User Interface? Does it have built in charts? And most importantly, did you witness bugs in use? You might end up losing lots of cash if it just halts when you’re placing a trade, or closing one!
- Account Opening Requirements : Check for brokers that dont give much restrictions. Some brokers now offer opening accounts with as little as $25. Others even allow for additional bonus with your initial deposit. I’ve personally seen 20% with some Forex Brokers (Etoro in some cases)
- What are the options available for cash withdrawal from your account? Credit Cards, Bank Transfers and Checks. Check if your selected broker has your one of choice.
- Leverage : Some Brokers don’t offer more than 1:25, as per the US Law. If you live outside the US, you could benefit from leverage levels up to 1:400. Personally, I don’t recommend such high leverage, as it could wipe off your account easily within a few trades.
- Forex Training : Make sure this Broker offers free training, especially if you’re new to Forex. Don’t trade until you’re sure a 100% you’ve grasped what you learnt from these Forex Education sessions.
We don’t provide named recommendations for one of them as the Best Forex Broker, however, I could safely say that Etoro has all what’s mentioned above and more. It’s definitely one of the best brokers around.
Forex investment is always considered a pleasurable experience for investors and with the passage of time, more and more people are coming in to join the enthralling financial opportunities offered in forex market. Even if you have low capital, still you can enter in this financial market with full confidence. This is the type of market that doesn’t bare you to enter and maximize returns against your investments even if you don’t have much money.
Unlike the past when the banks and the financial institutions were the only eligible clients to invest in forex world, now any average Joe is able to enter in this enticing financial market and can reap its real-time financial benefits. The online technology has made this possible to enjoy this market at the comfort of your own place. Now you can enjoy your forex buying and selling from the convenience of your own resting place. The online technology has made forex market available at your doorstep these days. All you need to do is to perform a few mouse clicks to make real money out of it.
As the current forex investment is not limited to giant sized financial institutions and banks, you can witness a hell of multifarious fascinating packages for individual clients all around. The banks and financial institutions perform on the higher level and they also provide leverage funds to the local forex traders and individuals as well. This creates a strong operational chain of forex investment from higher level to the lower level. The amazing part of the forex related investment is that even a small investor is able to hold large currency pairs with the help of high leverage availability. In other words there is no such obstacle that can bare you to enter in the forex world now.
The investment in forex can give you hundred percent returns in the long run. I.e. by throwing one thousand dollars in the market, you can earn more than one hundred thousand dollars in return. The amazing part of this investment is that you can open a mini account with couple of hundred dollars forex minimum deposit. This is one of the main reasons of huge influx of clients in this industry from all corners of this planet. The forex world has gained immense popularity as compared to the past and this is also proven by high level of liquidity and daily turnover in this financial market these days. The forex market has breached all types of physical boundaries with the help of online technology.
The forex market is one of the largest financial markets all over the globe that has breached the trillion daily turnover mark. The best way to win the forex market is to know about the fluctuations in this market and its relation with various types of currency pairs. After all, you have to do your homework to protect your hard earned money. All those folks who opt to nose dive into the forex market without doing preparation normally end up with a great mess. One of the most appreciated ways to get the real knack of forex market investment is by practicing the free online forex accounts. These are virtual accounts that don’t have real money in them but they do operate like a real forex account. You can easily utilize those accounts to practice and formulate your own forex winning strategy. This is a handpicked way to learn much without putting your hard earned money at stake. After you feel that you have gained enough experience to win this market, you can dive into the real money making adventure.
Another important factor about forex related investment is that it is extremely suitable to late night owls as this market continues to perform 24 hours & 5 days a week. Moreover, you can easily invest unlimited amount of money as there are no regulatory barriers for a fix type of investment in this market. Similarly this market is also untapped on the amount of winning returns as well. If you are damn serious in taking the first step toward ultimate financial freedom then you must reckon on the fascinating forex market trading. The lucrative world of forex looks very enthralling to all those folks who want to attain their ultimate financial goals but they must not discount the risks involved in this market as well. Moreover, this market is very cheap as compared to the other financial markets such as the stock market or property market. Forex related investments are really coming up with a rapid pace all around the globe.
The nature of our global economy mandates an exchange of capital between nations and economic zones. When an American purchases a Toyota, a Japanese car, the US Dollars the American provides must be converted to Japanese currency- the Yen or JPY. Billions of transactions like these occur each day, creating the largest market in the world. Nearly $3 trillion of capital is exchanged in the foreign exchange market each day- only $30 billion worth of transactions occur in all the American equity markets combined.
Economic and political events affect the relationship between currencies. For example, if the United States is perceived to have an increasing economic strength against another economy, the USD will increase against that economy’s currency. These fluctuations in value between currency pairs can occur in a steady trend line over months or can be drastic, moving many cents in one afternoon as a result of a single economic or political event.
Individuals are able to participate in foreign exchange [Forex] trading as day traders by speculating on the movement between currency pairs online. In order to participate in Forex online trading, an individual must choose a currency pair. All trades are relative to two different currencies. For example, the GBP/USD is a commonly treaded pair. If a trader believes that the GBP [British Pound] will gain strength against the USD [US Dollar] he will purchase the GBP/USD. If a trader believes the GBP will weaken against the USD, he will sell the GBP/USD.
A trader profits from online Forex trading when the currencies fluctuate as the trader predicted. Because of the leverage used when trading Forex online [up to 400:1], significant amounts of money can be made or lost as a result of small market movements. With $250 a trader can open one standard lot. If a trader accurately predicts a 1 penny movement, they will make $1,000 or a 400% return off of their initial $250.
The Forex market is the OTC [Over the Counter] Spot foreign exchange market. The spot nature of Forex online trading allows traders to take advantage of Forex market’s tremendous liquidity. FX Trading’s entirely electronic, online trading system provides traders instant execution, allowing them to immediately enter and exit the market as they choose.