So I’ve got this new currency exchange signals program, Forex Neutrino and I want to select a broker to trade with. The choice is vital, and yet many people do not get it right first time. Having the right broker can actually make a difference to your profit or loss. So what should you look for in a forex broker?  

1. Investment Level

Look for a brokerage service that is targeted at clients at your investment level or a little higher. They vary seriously from a $25 minimum right up to $10,000 or more. Do not go for the foreign exchange broker with the lowest minimum investment unless you really are going to invest the minimum. Each company’s spread and services will be different, and you would like a service that is a good match for you.

2. Regulation

Check their membership of regulatory bodies. This could give you some protection in the case of the corporation’s failure. Bear in mind that the regulators will depend on the country in which the company is registered. The main US regulators are the Commodity Futures Trading Commission (CFTC) and the national Futures association ( NFA ). Foreign brokers won’t be registered with them but will have other options. Check precisely what those are and what protection they give you.

3. Platform

Take a look at the software platform. You can generally access this in a demo account. Unless you plan to subscribe to a fresh technical analysis service, you will want something that offers good charts. Some forex trading brokers also offer financial stories alerts which can be helpful. Don’t forget to check that the order process is clear and straightforward, to avoid mistakes.

4. Costs

Costs can be quite different from broker to broker. They may charge fees per transaction or they may operate solely on spread, or a mix of the 2. Spread is the difference between the buy price and the sell price . Check the costs for the currency pairs that you are most liable to trade, since this is what will impact you most.

5. Lots

The broker will have a minimum lot size which is related to the minimum investment level. Often, a standard lot is 100,000 currency units, a mini lot is ten thousand and a micro lot 1,000. It can be useful to be in a position to trade smaller lots for some systems so that you can take several lots per trade change the amount of each trade, close out 1/2 your profits, etc . Alternatively, some brokers allow fractional lots so you could trade half a lot, and so on.

6. Leverage

Leverage means that you do not need anywhere near the exact lot size in your account. Most traders probably operate with one hundred times leverage, so $10 controls $1,000, $100 controls $10,000 for example. However , some brokers offer two hundred times or maybe 400 times. This offers you the opportunity to make more money with less, but also carries more risk.

7. Support

There might be times when you need technical support fast. All brokers offer some kind of service, but it is worth testing speed and style of reply by asking a technical question after you have joined up for a demo account with your shortlisted forex broker.