How Do I Find The Best Forex Broker? - KeyTrending.com Forex experts give the answer
In this article, KeyTrending Forex experts will introduce you to the basic concepts of investing / trading in the financial markets.
How Do I Find The Best Forex Broker? - Every foreign exchange trader, whether short-term day trading in the foreign exchange market or long-term protection against currency fluctuations, has special requirements and special wishes for their foreign exchange broker, which is ideal for him. These requirements can be very complex, especially when trading Forex.
You really have a better chance of finding a suitable broker with test options (demo account) of almost all mainstream FX brokers like KeyTrending Forex that offer a demo account. So you can test the forex broker and their FX trading platform and see if the system is right for you.
To make it easier for you to find a good forex broker, KeyTrending.com Forex experts provide several requirements and advice in this area.
10 Tips for Finding a Forex Broker
1) Demo accounts:
Demo accounts allow interested traders to test the broker. Without being exposed to market risk, a trader can usually test live price trading on an appropriate platform using a practice account and learn it practically in a playful way.
Demo accounts with most brokers work from 14 to 30 days and have a fictitious start-up capital in the amount of 50,000 to 100,000 dollars or euros. Thus, the trade is modeled as if it were in real market conditions.
2) The size of the deposit
Those who are interested in trading and want to open a trading account with a forex broker should not only be guided by the criterion of the size of the depot. As a rule, the size of the deposit is an indicator of the amount (initial capital) with which traders can open an account with KeyTrending.com Forex. It is also recommended to open standard accounts rather than mini accounts (check these differences once on demo accounts).
Please note: It is not recommended to work with an extremely low capital base, as you can very quickly be thrown out of your existing position. In general, it is better to operate with a higher capital base and a reasonable leverage ratio oriented towards this. This protects you from being forced too quickly and unintentionally!
Your broker should be able to offer low spreads on the most common currency pairs. On average, the spread for major currency pairs should not exceed 3-5 points. Many major forex brokers, like KeyTrending Forex, easily offer spreads for major currencies from 3 to 5 pips, depending on the size of the account. After some trading experience, you should also check for yourself if you are better off using a fixed spread model than spreads that change due to the range of market fluctuations (especially around explosive economic data).
4) Guaranteed stop loss:
With a guaranteed stop loss, the trading partner ensures that the position is actually closed at the desired price - regardless of the actual market trend. Certain brokers have a paid guaranteed stop loss.
5) Airbag function:
The so-called airbag function must be observed! This ensures that in the event the market goes against you, you will actually only lose your deposits and that you will not be required to make additional contributions.
6) Charting tools and techniques:
Your broker should have the most common charting technique. Forex trading is distinguished by charting technologies, technical analysis, indicators and other tools like no other market. Ideally, some brokers also offer chart trading. It is also useful for those who do not have a 22 "or 24" monitor or have multiple monitors in a daisy chain, such as a professional trader.
7) MM - Market-Maker: Market-Maker
provides the client with a platform for trading foreign exchange. Market Maker is a broker that sets the buy and sell prices. KeyTrending Forex brokers are examples of market makers. They buy and sell financial resources (e.g. derivatives / CFDs) or, in the case of a forex market maker, constantly offer and request their proposed currency pairs for trading.
Clients usually do not pay a commission for their services, but only pay the appropriate spread. The market maker usually takes the position of a counterparty and leads the other side to the buyer. As the name suggests (market creation), it prepares the marketplace for its customers. An example should make this clear: Market maker client A buys EUR/USD at 1.4850 and client B sells EUR/USD at 1.4850. Market Maker does nothing but execute these two orders against each other.
Thus, the orders of clients of KeyTrending Forex broker are processed internally. Concern? The market itself is so large ($3-4 trillion a day worldwide) that no market maker can ever influence the market.
8) STP - pass-through processing:
STP Forex brokers send customer orders directly to the market to the appropriate interbank market participants creating liquidity. The more participants and liquidity there are in the foreign exchange market, the better and more profitable client orders will be executed. You trade "directly" - without a "dealer" (market maker)!
9) ECN - electronic communications network:
The ECN trading account is especially suitable for experienced traders looking for a forex broker with a customer service orientation. An ECN account gives you direct access to over 40 streaming currency pairs and precious metals. Most of the time you trade on well-known trading platforms such as MetaTrader 4 or other ECN platforms.
With an ECN broker, you trade directly with institutions participating in the interbank market and other trading partners, resulting in the best possible pricing opportunities. ECN brokers are pure forex brokers, not market makers. There is a big difference between a market maker (dealing center) and a broker (ECN)! An ECN broker is a “conflict free” broker (it only transmits a position in the respective markets), a market maker with a dealing center often takes a position against a client.
ECN brokers are great for scalping.
10) Additional base values for trading:
Some forex brokers allow you to trade the most important commodities such as gold, silver, crude oil and the world's most famous indices, in addition to purely foreign exchange trading. This should not be an absolute selection criterion, but it is an absolute plus for every broker, like KeyTrending Forex broker. On top of that, correlation effects in the respective markets, for example, can also be traded directly.