Just as it is impossible to trade stocks without an intermediary calls
stock broker, it is also impossible for a Forex trader to trade in currency
market without a broker.
To participate in Foreign Exchange market therefore, requires that you
work with an intermediary called Forex Broker.
In other to maximize your profit and also make your trading experience
smooth you must work with a reliable broker. Here are 4 important things you must consider before you choose a forex
First and foremost, you must make sure the broker you want to be
trading with is regulated by regulatory authority in the country where
the broker resides.
There are fraudulent brokers out there and 99% of the fraudulent ones
are not regulated. Though some of them claimed they are registered,
don't be deceived by business registration. Support
Look for a broker who provides around the clock support 24 hours a day
7 days a week just in case you do run into any problem. Minimum Deposit
Minimum deposit is an issue for many people when they open a forex
trading account. Many brokers require big minimum deposits, sometimes
as high as $5,000. However, other brokers sometimes require as little as
$5 to open a trading account. Forex trading uses leverage which lets you
earn big sums of money with little money invested, although it's not
recommended to trade forex with little capital. If you are short on cash,
make sure your broker will allow you to open an account even with what
you have. Leverage
Ask about the leverage options of your forex brokers. Leverage, which is
presented in ratio, will tell you the proportion between the total capital
available for trading versus your actual capital.
Aim for a forex brokers with flexibility in their leverage margin so as to
allow you to opt for the leverage that is suitable for you. Lot Size
Trade size varies from one broker to another. Generally 100,000 trading
units of currency is considered a standard lot, 10,000 of trading units is
a mini lot, and 1,000 trading units is a micro lot.
Trading with a broker that allows micro trading is recommended,
especially if you are new in this business.
These are the main points that you should be looking out for when
choosing the best Forex trading broker
One of the major reasons while Nigerians do lose money in Forex is
because they trade with wrong brokers.
With the information provided here I believe you now know what it takes
to chose a reliable broker, in other to minimize risk and maximize your
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