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Choosing a Forex Broker
In order to trade in the Forex market you will need to find yourself a broker. A broker is someone who executes trades according to your wishes and earns a commission on each trade.
But there are so many brokers out there competing for your business it can be hard to figure out which one is best. This article will give you as idea of what to look for.
Transaction Costs. In the forex market, brokers are paid via the bid/ask spread. There should be no hidden fees or charges to trade. However, there may be additional charges to access certain reports and optional services.
Obviously the smaller the spread the better. Pip spreads vary by broker (and also by currency pairs), so shop around for competitive rates.
Currency Pairs Available. All brokers should at least have the big seven currencies ((AUD, CAD, CHF, EUR, GBP, JPY, and USD). But if you plan on trading New Zealand dollars or Danish krones, you should be sure that the broker is able to do so.
Immediate Execution of Orders. Currency prices are constantly moving up and down and any delay in the execution of your order can cut into your profits or add to your losses. Of course its possible a delay will help you, but it never seems to work out that way does it? Look for a broker that can consistently execute your trade at the price you see on your screen. An occasional delay is understandable, but if it happens frequently find yourself a new broker.
Free Tools. In order to analyze currency prices, spot trends, and plan entry and exit points you need access to charting and technical analysis tools. Most brokers offer basic services free of charge with an expanded array of tools for an added charge.
Minimum Account Balance. As a small investor you will need a broker that does not require a large balance to open an account. Many brokers today will let you open a mini-account with as little as $300.
Margin Requirement. The lower the margin requirement, the more leverage you have. If a broker allows you to use 100:1 leverage, that means you can trade $100,000 in currency for only $1,000. You can use margin to rack up huge profits. But don't margin yourself too much or you will find yourself wiped out fast.
Superior Customer Service. This is something traders often overlook when choosing a broker and later regret it when they need assistance. A quality broker should respond quickly to any question you have. They should have knowledgeable reps available 24 hours a day by phone and email.
A User-friendly Trading Platform. Some brokers require you to download a trading program to your PC in order to make trades. Others let you make trades directly over the web. Pick a few brokers out and sign up for a free demo account. You can trade with play money while you test out their software and see which one works best for you.
Recent Forex News
Forex Technical Analysis Reports (ActionForex.com)
Technical analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Daily Forex Outlook: USD/JPY
The chart shows my working count for the movement started from 105.56. The fall is spectacular but I do not think that it is impulsive in nature. I labeled this movement as a corrective combination and if it is already over, one should expect at least 61.8 % retracement. With...
FX Thoughts for the Day
The Aussie is likely to continue to trade sideways between 0.9330-9530 for some more days, possibly for a few more weeks. In the longer term, it is gearing up for a big move of 300-500 points, which could see it either rise towards 1.00 or fall towards 0.90. This might...
Daily Technical Strategist
EUR recovered higher to close the session at 1.5405 Thursday after pushing below its May 02'08/Mar 24'08 lows/.382 Ret (1.4438-1.6018 rally) at 1.5360/41 on intra basis. A follow-through to the upside in early trading today suggests that the said recovery off the 1.5288 low has some more upside to go....
Euro May Enter Fastest Part of Decline
As stated yesterday, we are bearish as long as price is below 1.5594 (red line). An unexpected move above there would cause us to reassess the situation. As it stands now though, we are treating the decline from 1.6018 as a series of 1st and 2nd waves (or A-B-1 and...
Technical Analysis Daily: USD/JPY
The downward trend of Japanese Yen against the US Dollar continued and the currency couple reached today 102.80, which is the first support for today. Next support downwards is expected 102.00, followed by 101.30. In upward direction resistance for the USD/JPY is expected at 104.75, followed by 105.60, and 106.40.
Newsfeed display by CaRP
Forex Fundamental Analysis Reports (ActionForex.com)
Fundamental analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
U.S. Market Update
In currencies, Risk aversion returned to the front burner as concerns over the financial sector health resurfaced following AIG's earnings after the bell on Thursday. The carry-related currency pairs exhibit a high degree of volatility during the session as equities were broadly lower and fixed-income futures were bid up. Dealers...
Forex Fundamental Outlook
he common currency gave back some gains during the North American session after crude oil futures slipped back to the $124 handle after trading as high as US$ 126.20, a new lifetime high. Data released in the U.S. today saw the March trade deficit print at US$ 58.2 billion, down...
Sterling Deepens Gloom, Yen Gains on Risk Appetite
The US trade deficit fell to $58.21 billion in March from $62.3 billion, overshooting expectations of $61.3 billion. US exports fell 1.7% after rising 1.8%, while imports tumbled 2.8% after rising 2.6%. The decline in imports was mainly owing to a temporary retreat in energy products. While much ink had...
Deficit Narrow!
The trade deficit did narrow yet still imports falling had the deepest impact while as well exports slowed! So no good growth from it yet slight expectations to revisions to the GDP yet still exports are not as bright as one might have hoped. While credit woes are roaming once...
U.S. Trade Deficit Continues to Retreat
The U.S. international trade deficit narrowed to US$58.2 billion in March from a downwardly revised US$61.7 billion (prior US $62.3 billion) In February. Going into the March release, the deficit was expected to narrow to US$61 billion from February's initially reported level.
Newsfeed display by CaRP
Forex Technical Analysis Reports (ActionForex.com)
Technical analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Daily Forex Outlook: USD/JPY
The chart shows my working count for the movement started from 105.56. The fall is spectacular but I do not think that it is impulsive in nature. I labeled this movement as a corrective combination and if it is already over, one should expect at least 61.8 % retracement. With...
FX Thoughts for the Day
The Aussie is likely to continue to trade sideways between 0.9330-9530 for some more days, possibly for a few more weeks. In the longer term, it is gearing up for a big move of 300-500 points, which could see it either rise towards 1.00 or fall towards 0.90. This might...
Daily Technical Strategist
EUR recovered higher to close the session at 1.5405 Thursday after pushing below its May 02'08/Mar 24'08 lows/.382 Ret (1.4438-1.6018 rally) at 1.5360/41 on intra basis. A follow-through to the upside in early trading today suggests that the said recovery off the 1.5288 low has some more upside to go....
Euro May Enter Fastest Part of Decline
As stated yesterday, we are bearish as long as price is below 1.5594 (red line). An unexpected move above there would cause us to reassess the situation. As it stands now though, we are treating the decline from 1.6018 as a series of 1st and 2nd waves (or A-B-1 and...
Technical Analysis Daily: USD/JPY
The downward trend of Japanese Yen against the US Dollar continued and the currency couple reached today 102.80, which is the first support for today. Next support downwards is expected 102.00, followed by 101.30. In upward direction resistance for the USD/JPY is expected at 104.75, followed by 105.60, and 106.40.
Newsfeed display by CaRP
Forex Fundamental Analysis Reports (ActionForex.com)
Fundamental analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
U.S. Market Update
In currencies, Risk aversion returned to the front burner as concerns over the financial sector health resurfaced following AIG's earnings after the bell on Thursday. The carry-related currency pairs exhibit a high degree of volatility during the session as equities were broadly lower and fixed-income futures were bid up. Dealers...
Forex Fundamental Outlook
he common currency gave back some gains during the North American session after crude oil futures slipped back to the $124 handle after trading as high as US$ 126.20, a new lifetime high. Data released in the U.S. today saw the March trade deficit print at US$ 58.2 billion, down...
Sterling Deepens Gloom, Yen Gains on Risk Appetite
The US trade deficit fell to $58.21 billion in March from $62.3 billion, overshooting expectations of $61.3 billion. US exports fell 1.7% after rising 1.8%, while imports tumbled 2.8% after rising 2.6%. The decline in imports was mainly owing to a temporary retreat in energy products. While much ink had...
Deficit Narrow!
The trade deficit did narrow yet still imports falling had the deepest impact while as well exports slowed! So no good growth from it yet slight expectations to revisions to the GDP yet still exports are not as bright as one might have hoped. While credit woes are roaming once...
U.S. Trade Deficit Continues to Retreat
The U.S. international trade deficit narrowed to US$58.2 billion in March from a downwardly revised US$61.7 billion (prior US $62.3 billion) In February. Going into the March release, the deficit was expected to narrow to US$61 billion from February's initially reported level.
Newsfeed display by CaRP