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Customer satisfaction and safety are just part of the story. You want to find a broker who executes orders quickly and with minimum slippage. All online Forex brokers should offer automatic execution and have clear policies regarding slippage. They should be able to tell you how much slippage can be expected in both normal and fast-moving markets.
Next you want to know the fees involved. What is the spread? Is spread fixed or variable according to the type of account? Are Forex mini accounts subject to wider spreads? Are there any other charges? Smaller spreads mean more profit for the trader, but there may be a trade-off between spread and service. Look at the overall picture before deciding to go with a particular broker.
Margin accounts in Forex are the lifeblood of Forex trading, so be sure you understand the broker's margin terms before setting up an account. You need to know the margin requirements and how margin is calculated. Does margin change according to the type of currency traded? Is it the same every day of the week? Some forex brokers may offer different margins for mini and standard accounts.
Forex trading software is very important for the online Forex trader. Get a feel for the options that are available by trying out a forex demo account at a few online forex brokers. Above all, you are looking for reliability and the ability to perform well in fast-moving markets. The software should offer automatic forex trading and may have special features such as trailing stops and trading from the chart. Some features may only be available at an extra cost, so be sure you understand what your forex trading needs are and how much the forex broker charges to provide them.
Other information to find out about includes the forex broker's policy regarding minimum forex account balances, interest payments on account balances, which currencies can be traded and whether or not non-standard sized lots can be traded. You should also find out whether clients' funds are insured and the extent of that insurance. by: Simon Harris
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