If you are new to IC Markets Review Forex Trading one of the first things you will need to do is find yourself a broker. A broker is basically your link into the trading markets, so it goes without saying that you need to find a good one.
There are 5 criteria you need to consider when choosing a forex trading broker
What services are offered? – It is important to ensure that your broker is not only open for business on the 5 days of trading but also is available 24 hours a day for customer support. You should also check that they cover at least the seven major currencies, and that they offer technical analysis of your orders at the agreed price
What is the cost of services offered? – Forex brokers make their money from the spread, or the difference between the buying and selling price of the pair. This can vary depending on the broker and the pair.
How reliable is the service provided by the broker? – Finding a trustworthy broker is vital if you don’t want to wake up one day and find that they have disappeared with your hard earned cash. You need to check if the broker is registered with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). It should then be possible to ascertain whether they have any complaints files against them. Forums are often a good way to check out a broker an also to check out the reliability of their platform. It is vital that they don’t have unreliable servers, as you don’t want to find they are suddenly offline when you are in the middle of trading as you may miss the optimum moment to close a trade
What is the lot size offered by the broker? – The standard lot size is generally 100,000 units of currency. You can also get mini lots and micro lots. Some brokers offer fractional lots as well. It is up to you decide what best suits your need, but it is important to know what they offer so that you can make an informed choice.
What are their margins? – Again knowing what margins they offer means you can make an informed choice. For example margin requirements that are low result in higher leverage which gives you greater profits or losses on the same fund size. If things go well you will have good profits but if they go badly you could find that your losses are greater.
Other considerations that you may want to take into account, include rollover charges and the interest paid on your margin account. However, the 5 considerations I have given you are sufficient when you are initially looking at how to find a forex trading broker. As with all things it is important to do your research and make sure you always make an informed choice.