Currency Trading Broker - What Makes The Best?
Choosing the right currency trading broker is an important part of getting off on the right foot as a trader. You need to consider the fees that your broker will charge as these will affect your profits. There are so many brokers in the market and they differ in the amount they charge. It is not necessary to choose the lowest cost broker, but this is certainly a consideration. It is good to determine if the services you receive justify the costs.
Calculating the cost of trading there are a couple of terms to understand. The spread is the difference between the bid and ask price of the currency. The bid is what you receive when selling your currency, the asking price is what you have to pay in order to purchase it. If the GBP/USD is 1.5200/1.5203 this means that to buy the pound it will cost $1.5203. The difference between the bid and ask is 3 pips. A pip is 1/100th of 1% of the lot size. On a lot of 100,000 this is $30.00. Search for a broker with the smallest spread so your costs will be as low as possible.
A good way to select a good currency trading broker is to ask for a recommendation from friends and family who are also trading. If they are satisfied with their broker this is a good indication that you might be also. Beware of brokers who advertise extremely low costs for trading. These low rates usually only last for a short period of time. Make sure that you get involved with a broker that can complete your transactions quickly. You need to trust your broker with your money.
Professionalism and honesty are the characteristics you should look for in a currency trading broker. You need to find someone who will work with you to achieve success rather than someone who is trading against you. Because there ae so many firms offering services, one thing that is absolutely necessary is to use a firm that is actively regulated by a government agency. Check with the agency to see what kind of record the firm has.
Try to find a broker who is truly interested in seeing you succeed. Don't get involved with brokers who take the opposite side of your trade. They will obviously not have your best interest at heart. Choose someone who will support you in achieving success rather than working against you.
If is recommended to choose a broker you trades through the Electronic Communication Network.(ECN) This is the type of currency trading broker who simply matches up trades from the buyers against the sellers. They do not take positions themselves. Market-makers will take the opposite position to yours in order to "make a market." This creates a conflict of interest. Stay away from this style of broker.
Using a service like a website that collects information on the different brokers will help you make an informed decision, as there are almost 'top' lists for the more popular ones.
It is worth the time spent to find the right curency trading broker to work with. Working with someone you trust can help you focus your attention on making money. - 23196
Calculating the cost of trading there are a couple of terms to understand. The spread is the difference between the bid and ask price of the currency. The bid is what you receive when selling your currency, the asking price is what you have to pay in order to purchase it. If the GBP/USD is 1.5200/1.5203 this means that to buy the pound it will cost $1.5203. The difference between the bid and ask is 3 pips. A pip is 1/100th of 1% of the lot size. On a lot of 100,000 this is $30.00. Search for a broker with the smallest spread so your costs will be as low as possible.
A good way to select a good currency trading broker is to ask for a recommendation from friends and family who are also trading. If they are satisfied with their broker this is a good indication that you might be also. Beware of brokers who advertise extremely low costs for trading. These low rates usually only last for a short period of time. Make sure that you get involved with a broker that can complete your transactions quickly. You need to trust your broker with your money.
Professionalism and honesty are the characteristics you should look for in a currency trading broker. You need to find someone who will work with you to achieve success rather than someone who is trading against you. Because there ae so many firms offering services, one thing that is absolutely necessary is to use a firm that is actively regulated by a government agency. Check with the agency to see what kind of record the firm has.
Try to find a broker who is truly interested in seeing you succeed. Don't get involved with brokers who take the opposite side of your trade. They will obviously not have your best interest at heart. Choose someone who will support you in achieving success rather than working against you.
If is recommended to choose a broker you trades through the Electronic Communication Network.(ECN) This is the type of currency trading broker who simply matches up trades from the buyers against the sellers. They do not take positions themselves. Market-makers will take the opposite position to yours in order to "make a market." This creates a conflict of interest. Stay away from this style of broker.
Using a service like a website that collects information on the different brokers will help you make an informed decision, as there are almost 'top' lists for the more popular ones.
It is worth the time spent to find the right curency trading broker to work with. Working with someone you trust can help you focus your attention on making money. - 23196
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A KEY factor for your success will be your currency trading broker if you are serious about online foreign currency trading!
posted by X - Men @ 6:24 AM
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