It should be understood that there are many important concepts to grasp before venturing into trading with real money. Those who were not ready but decided to start anyway reported huge losses in a short while. You have to be conversant with the main critical qualities a forex broker has. This is how you select the best forex brokers. This will be your guide in deciding which one to pen an account with.
There things to look into include forex margin, forex leverage, ECN forex and forex spread. You can as an example analyze the margin offered by the Forex Brokers Australia forex broker comparison. A margin of 2% means that you can leverage your money by 50 times. This seems to be the current maximum one can leverage.
This declared maximum has not gone down well with forex brokers coalitions, with many of them plotting to trade in foreign markets, so a to overcome that limitation. You need to read through the review sites to find more information regarding this matter so as to find the best places to trade. You need also to be especially vigilant when it comes to the safety of your money. You need to see what rules have been put in place to ensure you do not lose any of our money if a broker declares bankruptcy.
Find tout id the brokers are market makers or use ECN. This information shall prove rather critical. A forex broker with a dealing desk can trade against our positions. ECN brokers are therefore preferred. On the other hand, ECN brokers can turn out to be costly if they charge a commission or each trade. You are now forced to balance your options, between the market makers and ECN. Visit this website at http://www.ehow.com/how_2075540_trade-forex.html and learn more about forex.
You need to examine the forex spread. Where there is a low spread, it is to your advantage, since you will not be charged huge commissions. ECN forex brokers can afford to give very low spread due to the fact that their platforms can tap into a huge pool of liquidity providers. You will also need to see if the spreads are fixed or variable. Variable spread situations usually mean there are wider fluctuations any time there is a major financial news announcements. Spillage is another thing to think about, where your order is filled at a price that is not what you were expecting. You need to have an idea of the kind of spillage that might occur.
These make up the search criteria for Forex Brokers Australia. You also need to access a demo and micro account for you to practice on. This is critical for beginners. After then can they use standard accounts.