What to look for when searching for the best broker?

You may have excellent forex plans but if your broker embezzles your funds all of your hard work and analysis will be worthlessTherefore in this guide we are going to tell you about what factors you need to consider before selecting your forex brokerSo lets get started1 Ask yourselfFirst things first before looking at brokers assess your own needsAsk yourself Am I going to trade a lot or a littleConsider using an ECN broker if you trade often and want to profit on slight price movements You will be charged a fee on trades but the spreads are much tighter which is important when trading small movementsIf you dont think youll need an ECN broker then you still have a big pool of potential brokers left You can look for STP Straightthrough processing brokers They work similar to ECN but allows fewer spreadsHow much capital do you haveYou must trade microlots with a limited amount of capital You will start trading mini lots if you have more than 5000 If you dont have at least 50000 dont open a regular lot account2 Check brokers credibilityA reliable broker must have a high level of security Fortunately determining a forex brokers reputation is not difficultThere are regulatory bodies that distinguish the trustworthy from the dishonest such as ASIC Australian Securities and Investment Commission FCA Financial Conduct Authority in the UK NFA National Futures Association in the US and othersYou can check theFXList site to find a list of the most credible forex brokers3 Transaction CostsAny time you enter a trade you must pay for either the spread or a fee so it is only sensible to seek out the most reliable and cheapest ratesCheck to see if you want tight spreads for your style of trading and then consider your options It all comes down to striking the right balance between security and low transaction costs4 Trading platformThe majority of forex trading activity takes place on the trading platform of the broker This means that your brokers trading platform must be userfriendly and secureWhen looking for a broker make sure to look at the trading platform5 Trade executionSome forex brokers are considered to have a high level of leverage which tends to be appealing to traders who use aggressive trading strategiesHigh leverage can result in large profits but it is also increasingly risky Traders who prefer a more conservative approach should look for brokers with moderate leverageBefore beginning to trade on a real money account it is important for a trader to determine these peculiarities6 Avoid promosFinally when opening a live account avoid any and all promos offered by the forex broker For instance Open a 1000 account and receive 100 in bonus cashNothing in life is truly free Accepting a bonus may cause withdrawals to be delayed because the broker now owns some of the money in your account