Picking a Forex Broker

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http://www.theforexnittygritty.com/forex/picking-a-forex-broker

Picking a Forex Broker

Forex trading happens online. This makes picking a Forex broker important because the broker and his trading platform are your connection to the markets. You may be able to learn how to trade currency but you need the tools to connect to trades in order to make any money. Here are a few thoughts about the important details of picking a broker.

It Is a Nano Second World

A nano second is a billionth of a second. Electronic trading by fast computers takes place in bare fractions of a second. A pertinent thing to ask when picking a Forex broker is just how fast are trades executed with his platform. What is the reliability of his system? Are trades routinely executed rapidly and without fail or are the glitches that will leave you hanging out there in what quickly becomes a bad trade that you cannot get out of?

Nuts and Bolts

Just how are your orders filled? A good trader sets his stops as he trades. You buy Euros with Yen and at the same time set a price at which to sell and take a profit and a price at which to sell and limit your loss. The bottom line question in picking a Forex broker is if your trading stops are guaranteed by the broker. There should be a precise description of order execution policy available for you to read and fully understand before picking a broker.

How Much Are You Paying?

It is totally possible trade all day long with small winning trades and lose money at the end of the day. In picking a Forex broker be clear about if there is a commission structure. The majority of Forex brokers do not charge a commission but rather make their money from the bid-ask price spread. If, however, your broker charges commissions instead you need to be totally clear about what you are paying and how it will eat into your hard earned profits.

Necessary Tools for Trading

The trading platform that you use and the broker should have tools available to you online. These include news feeds, statistical charting and predictive programs and even live commentary on the markets. An alert service is also handy to help you spot where the action is.

Leverage

The vast majority of traders use 50 to 1 leverage or less. There are, however, brokers outside of the USA that offer as much as 200 to 1. In picking a broker be careful of outliers. Very high leverage can in fact lead to great profits and it can also lead to great losses.There are a lot of profitable fundamental and technical Forex strategies. But none of them is really based on an all or nothing approach to winning it all in a couple of trades. Beware in picking a broker of those offering too much leverage.

Help when You Need It

There is nothing more frustrating than a computer program, computer or trading system that develops glitches or just plain shuts down when profit from a great trade is in sight.

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Picking a Forex Broker

  1. 1. By: www.TheForexNittyGritty.com
  2. 2. Forex trading happens online. This makes picking a Forex broker important because the broker and his trading platform are your connection to the markets. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  3. 3. You may be able to learn how to trade currency but you need the tools to connect to trades in order to make any money. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  4. 4. Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com
  5. 5. Here are a few thoughts about the important details of picking a broker. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  6. 6. It Is a Nano Second World By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  7. 7. A nano second is a billionth of a second. Electronic trading by fast computers takes place in bare fractions of a second. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  8. 8. A pertinent thing to ask when picking a Forex broker is just how fast are trades executed with his platform. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  9. 9. What is the reliability of his system? Are trades routinely executed rapidly and without fail or are the glitches that will leave you hanging out there in what quickly becomes a bad trade that you cannot get out of? By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  10. 10. Nuts and Bolts By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  11. 11. Just how are your orders filled? A good trader sets his stops as he trades. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  12. 12. You buy Euros with Yen and at the same time set a price at which to sell and take a profit and a price at which to sell and limit your loss. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  13. 13. The bottom line question in picking a Forex broker is if your trading stops are guaranteed by the broker. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  14. 14. There should be a precise description of order execution policy available for you to read and fully understand before picking a broker. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  15. 15. How Much Are You Paying? By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  16. 16. It is totally possible trade all day long with small winning trades and lose money at the end of the day. In picking a Forex broker be clear about if there is a commission structure. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  17. 17. The majority of Forex brokers do not charge a commission but rather make their money from the bid-ask price spread. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  18. 18. If, however, your broker charges commissions instead you need to be totally clear about what you are paying and how it will eat into your hard earned profits. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  19. 19. Necessary Tools for Trading By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  20. 20. The trading platform that you use and the broker should have tools available to you online. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  21. 21. These include news feeds, statistical charting and predictive programs and even live commentary on the markets. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  22. 22. An alert service is also handy to help you spot where the action is. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  23. 23. Leverage By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  24. 24. The vast majority of traders use 50 to 1 leverage or less. There are, however, brokers outside of the USA that offer as much as 200 to 1. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  25. 25. In picking a broker be careful of outliers. Very high leverage can in fact lead to great profits and it can also lead to great losses. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  26. 26. There are a lot of profitable fundamental and technical Forex strategies. But none of them is really based on an all or nothing approach to winning it all in a couple of trades. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  27. 27. Beware in picking a broker of those offering too much leverage. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  28. 28. Help when You Need It By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  29. 29. There is nothing more frustrating than a computer program, computer or trading system that develops glitches or just plain shuts down when profit from a great trade is in sight. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  30. 30. In picking a broker make sure that there is twenty-four hour a day support, both online and by telephone. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker
  31. 31. When you want trade Forex to hedge business risk or to speculate on the markets picking a broker is an important first step. By: http://www.theforexnittygritty.com/forex/picking-a-forex-broker

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