FX Broker Comparison
In order to do a forex broker comparison you need to create a forex broker list. Here are the top nine points to consider when analyzing brokerages.
- Is The Broker Or Dealer Regulated?
- How Reliable Is The Broker’s Trading Platform?
- Capitalization
- Is The Company A Broker Or A Dealer?
- Customer Support
- Costs: Fee And Commission Structures
- Account Types
- Is The Broker Offering Any Added-Value Services?
- Leverage And Margin Call Policies
Once you can answer these questions you will have a much idea on which broker to trade with. Most forex brokers offer free demo accounts so that you can learn to trade on a practice account with no money invested.
To compare different brokers such as ECN’s and market makers you can use the a forex broker comparison table. The graph includes spread, margin, commission and mini and standard trading accounts.
If you take a few hours to do your research and answer the nine questions above to the best of your ability you are going to be able to find a very good if not the best forex broker possible but at the same time most likely save yourself thousands if not tens of thousands of dollars in fees throughout your trading career.
Often customer support can be overlooked as a factor when choosing a fx brokerage however I have to tell you it is vital. The fact of the matter is you are going to have a point in time when you need help and need to speak to someone. Countless circumstances could occur and you are going to want to talk to someone as quickly as possible. A live chat feature is highly desirable because you are able to get support within just a few minutes.
Finally one thing to consider that is not listed above when using the forex broker comparison list is does your broker allow hedging? Many US brokers are no longer able to offer this due to the new FIFO rules.