For beginners, forex trading presents some challenges.
These are the most important four criteria to take into consideration when looking for the best forex brokers to choose for newbies in forex day trading rules.
There is no doubt that “forex swindles” would be something traders do not want to experience. Find out if your chosen broker has registered themselves with any regulating bodies. If the broker resides in the United States then check to see if he is registered under the NFA, the National Futures Association. In the United Kingdom the Commodities Futures Trading Commission is the governing authority.
Examine the background of the brokers. They have most likely gained the confidence and trust of clients. When you do a search online, you can see what other people have said about the broker.
Your forex broker does not charge you a dime to use their service. They are compensated via Spreads once you have started trading. The spreads collected are paid by the forex broker regardless of your profit or loss. According to the broker, spreads could range from 10pips down to 1-2pips. To avoid being scammed, you should always check whether your forex broker charges high spreads to its customers. Perfect forex brokers will use Spreads as low as 2pips.
There are many brokers who have multiple trading instruments. Many beginners are confused, as they do not know what to do or where to begin. For a smooth, easy and fast execution of your orders it’s best to pick brokers with simple trading platforms. To help you choose the best forex broker, i’ve written an overview of how to do it.
Practice is the best teacher:
Beginners in the Forex market should avoid trading real money to minimize the risk. If you want to improve your ability to execute and perform on a live trading account, then it’s best to get some experience. To avoid this, you should only choose brokers that offer demo accounts with virtual account funds. Not all brokers give traders enough funds to do practice.