Forex brokers are individuals or institutions that offer a range of Forex services like management of our accounts and execution of orders. As our success in the Forex trading largely depends on the brokerage services, we must take our decision after comparing different types of Forex brokers. These days we will find many websites that help you to compare Forex brokers. There are few basic parameters like minimum deposit required to open an account, maximum leverage offered, spread of major currencies, commissions charged, number of pairs offered, and the availability of operating a mini account which we must consider while selecting our broker and also comparing from other brokers.
Compare the Forex brokers based on their reputation in the market. If it is part of a large group of companies, we can have more confident since the group itself will keep a check on the broker. The longer the broker has been active on the market, the more we can gather feedback from traders who have used their services. The third step for comparing the Forex brokers is to check out the types of account you will be able to open. The broker must provide demonstration accounts or “demo accounts“, which allows us to test the trading platform and the related work environment. They should also have an option of opening a mini account. The next step will be to compare the Forex brokers on the basis of standard accounts they are offering. As in these accounts, the minimum capital is higher than the mini account, the leverage is less important. Some brokers may also offer to open an account in various currencies like euro, dollar, yen, etc. But if we decide to trade in one currency that is not that of your own country, we must consider the exchange rates. The cost verses benefit analysis is very important when comparing Forex brokers. In a society savings is a magic word. Middle and lower middle class people want to earn little bit more and save their earnings for future. However, price is a vital issue when conducting a comparison. If a broker will offer low service charge that will good for a low investor but if they offer poor transaction quality that will very harmful than a broker whose charge is little bit more but offer high transaction including a good trading platform.
Availability and accessibility is the second major issue to comparing Forex brokers. Some Forex brokers offer their transaction from their office; some accept transaction order by phone or email. But important thing is that market never close except weekend. So, every pulse is very important, if we spent more time on Forex we will earn more. So, when we are conducting a comparison on Forex broker, endeavor and highlight broker’s availability and convenience.
There are also some minor but very important issues that we should always keep in our mind when conducting comparison of Forex brokers. User Friendly Platform, No hidden tab, Easy account opening option with comprehensive sign up form, Multiple currency pair, More than 6/7 pairs will be recommended, Multiple withdrawal methods as example: PayPal, check, master-card etc., Top notch contact support option as example: live chat, phone, email etc. These are really major issues to comparing Forex brokers.