Why You Need Top Forex Brokers to Succeed in Forex Trading
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
(SI Newswire) Forex market is the most accessible and the largest market in the world. Statistics shows that daily activity in the market exceeds more than $ 4 trillion in a day, but despite the market being that large, many traders’ fails, while a good number of these traders succeed. The difference between success and failure is directly related to the Forex broker your use.
A Forex broker is basically an intermediary between you is the trader and the currency market. They may be an individual, a firm or a company. The retails exchange trading would not be possible without them. But the question is, as an individual trader, do you really need a forex broker? One thing you must understand is that Forex broker may trade your funded account, but all the trading decision ultimately goes you, if you want, so they are basically there to guide you, so you are better off with a good Forex broker.
Not any Broker
Just because you need a Forex broker to succeed in Forex trading does mean you will pick any broker you come across. You need to scour for the top broker; here’s the reason why using a top Forex broker will translate to successful trading.
1. You will get advice on real time-time quotes.
Real-time quotes help you stay on the top of Forex market at all times, and a top broker can offer you advice on the same. He will be able to advice you on what currency to buy and when to sell to buy it based on new feeds. Remember there is the difference between quotes and real times quotes and that small difference can make a huge difference on your trades.
2. The broker will trade your funded account if you want them to: A good broker will be able to pass your trade to a liquid provider like the bank or a financial institution, doing this puts you in a better trading position, but as mentioned, if you want them to do that.
3. They can be able to provide you with necessary data from different trading platforms. A trading platform is a software that you can sell and buy currencies through, but a broker can enable you to trade through the regular web browser, by gathering data to help you trade effectively.
4. They can give you leverage:
This is one of the greatest benefits of a broker; they can offer you a type of a loan where every dollar you use to speculate gives control of a particular amount of the currency you are speculating. That loan becomes the leverage because it allows you to control a large sum of money using only small amounts yourself.
5. Better price: the market price also referred to as spot price is the price you can gain when with a broker. They are more than often close to the actual market value, so you will have a better deal with a broker than going to other intermediaries.
To simply put it, the top Forex broker will not just give you great advice, but they will also help you every step of the way.
The hardest part comes about when looking for a good Forex Broker among the hundreds out there. Choosing the right one may require sifting through overwhelming sites and magazines. The first thing you will need to find out whether the broker is registered with any regulating authority. If you are in the UK, they should be registered by FCA, In the US they should be registered with NFA or CFTC. Other bodies regulated Forex brokers depending on your location but before you decide to work with one, check if they are indeed registered. If the broker is reluctant to share information that can be vital to your trading then, you may need to consider other options.
Every Forex broker has a unique account offering for instance:
• Leverage; a broker can help a Forex participant access to leverage amount. Leverage will work in a traders favor with winning positions since chances of success or profit is great. Leverage, however, can destroy a trader’s account, so it’s highly recommended that you review the leverage of a particular broker before you begin trading. Some brokers have Forex account to be funded with an initial deposit say $50, but with leverage the buying power is greater.
• Spreads: your potential broker makes money through a small commission or spread and these differ from one broker to another. You may need to do some research on the same before you choose a broker and ensure you get one that offers that lowest spread on the currency pairs you intent to trade more often.
• Support level: It’s recommended that you check the support level your potential broker is offering. If you have an open order, and maybe something goes wrong, you will need to have someone who can sort you out as soon as possible.
It’s important that you compare different brokers to ensure you get the best. Pick at least two top forex brokers that fit your criteria and if they have a demo account open one. Starts trading in different market environments, in the platform, learn the tricks of successful trading and when you have questions, ask and see how they will respond. If the broker is happy to answer your question when you have a demo account, it may mean that the same will be transferred when you get a live account.
There may be some difference in demo account and the live ones, in terms of speed of execution, slippage, and reliability, but a demo account is a good way of knowing when you are ready to use a live account. It’s also an excellent way of determining whether a particular Forex broker will suit your trading needs.
Keep in mind that Forex trading has its share of risk and any broker who tells you otherwise should be avoided. You need to work with someone you can trust, someone who is reliable and experienced because these qualities will have a significant say or impact on your success as a trader.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Magnetize Your Audience Review: Coaching Program for Workshop and Seminar Entrepreneurs by Callan Rush Exposed
- Neuberger Berman Real Estate Securities Income Fund Announces Dates Of Previously Announced Tender Offer
- Worden Capital Management Stock Broker Career Openings
Create E-mail Alert Related CategoriesSI Newswire
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!