In fact, selecting the right forex broker is one of the most important things a new forex trader has to do. There are hundreds of forex brokers competing for your business and your options really open if you feel comfortable trading with an unregistered or offshore broker. Unfortunately for U.S. traders, new regulations that are being set forth by busy-body overseers of the forex market in the U.S. are making it harder for new brokers to enter the U.S. market and many are even leaving, but that’s a story for another day.
New forex traders should approach finding the right forex broker as they would shopping for a new pair of jeans. You have to find the right fit. Fortunately, the topic of forex broker selection is one of the most talked about forex-related topics out there. There are tons of free resources across the Internet that review every forex broker you’ve heard and probably a bunch you’re not familiar with. Reading some of these reviews will arm you with the information you need to make an informed choice and make you a smart forex broker shopper.
No matter what forex broker you’re evaluating, there are basic factors to consider. Obviously, you want to make sure your forex broker allows you to trade 24-hours a day and has customer service that is available at any time during any forex session. Of course you’ll need to consider how much leverage various forex brokers extend to their customers. Some forex brokers use 50 to 1 leverage. Others use 100 to 1 and some forex brokers will even extend more than that.
Other things you’ll want to research are whether or not your forex broker offers free demo accounts. Even more important than that may be finding a forex broker that offers mini or micro trading accounts so you don’t have to commit a ton of capital just to start trading. You’ll also want to see if your forex offers any bonuses such as free charting package, real-time news
All of that said, far and away the most important thing you need to consider when evaluating forex brokers is the cost of trading. That is, what are the spreads between the bid price and the ask price on major pairs at various forex brokers? All things being equal, if you’ve narrowed your choice down to two brokers and you notice that the EUR/USD pair is trading at 1.4565 by 1.4567 at Broker A and Broker B shows the same pair trading at 1.4566 by 1.4570. That’s a difference of two pips between brokers, or $20 on a standard lot, so your choice is clear.
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.
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