2010 reports have shown that there are over 1 trillion dollars that are invested in forex trading every year. Because of the fact that you can make a lot of money as a broker, there are many that appeared in the recent years. Some of them are really good while others are just trying to steal money from potential investors. It can become hard to choose one broker that is really good. Unfortunately the only real solution we have is to analyze forex trading reviews available on the Internet.
What to Analyze when looking for a broker through Forex Trading Reviews
There are numerous online brokers forex trading reviews on the Internet. The problem is that most of them are not actually written with objectivity and integrity in mind. This is why the first step is to find a very good website that offers unbiased reviews. Then we can look at other aspects that have to be analyzed.
Accreditation – We can say that it is always recommended to invest with brokers that are accredited and regulated. Those that are not regulated will offer really good deals but the truth is that your money will not be 100% safe with them. Such unregulated brokers will not answer in front of any fraud or cheating claim that you might have.
Leverage – The leverage that brokers offer is different from one to the other. You will want to look for those brokers that are giving you high leverage. Experts claim that a 100 to 1 leverage is very good for most average traders. If you opt for higher leverage you will need to invest higher amounts of money and this implies great risks.
Currency Pairs – Contrary to what you might believe, some online brokers will not offer deals in some currency pairs. You will want to look for brokers that trade in the specific pairs that you are interested in trading. Also, the more currency pairs offered by the broker, the better the service is.
Trading Platforms – Most online trading will go through special trading platforms, all specific to the chosen broker. Compare the trading platforms and go for high quality, good online support and easiness of use.
Spreads – Traders interested in short term forex trading will mainly focus on spreads. In this case there is a need to look for a broker that will offer spreads located between 2 and 3 pips.
The best way to choose a really good forex broker that will work for you is to make a list of all that you consider. Then eliminate some that you do not find appropriate based on the reviews. After this you need to open demo accounts for all that are left and see the one that is most suitable for your particular needs.