The volume of Forex brokers that offer trading platforms is so high now that it can be very hard to choose the one that is right for you. Obviously, they all offer attributes you can use during your forex training or live trading but you must consider the long term. That is, learning to use new software can take time, so when you do choose a broker the aim is to stay with them for as long as possible, unless a pioneer or simply offer better trading conditions such as lower spreads.
The aim of this article is not to tell you which broker to go for but rather, to provide you with 4 major tips which you should consider when looking for one.
1. Easy to use software
If you have never traded before using a brand new trading platform can be a bit daunting. Watching instructional videos or reading the manual can simply be too time consuming. However, if you want to trade, you have no choice. The important thing is to be comfortable with the platform so that when you trade, using it becomes second nature. For example drawing simple lines or calculating profit with a cursor for specific Forex trading strategies should be a breeze. Last thing you need is to struggle with using basic attributes that will waste valuable trading time.
2. Demo account
This is crucial. Your chosen broker must be able to provide you with a demo account where you can practice your Forex trading strategies and gain confidence. Simply put, this is a virtual environment where the market prices are real but you trade with fake money.
Contrary to belief, a demo account is not only useful when your Forex training commences. It is also useful to professional traders. For instance, if new Forex trading strategies are being devised or a trader is simply having a bad run, moving to a demo account for a few days is essential. This will re-install your confidence into your strategies or make you realize that there is something missing that needs to be added. Whatever the scenario is, a demo account is a great way to keep you at the top of your game.
Make sure your demo account does not last for a few days. It needs to be accessible as long as you have your live account.
3. Low commission and spreads
Without striking the obvious, the lower the commission and the spread, the higher your profit is going to be. There are a few brokers that offer no commission trading but the spread may be a bit higher. If you are trading higher time frames, the spread should only be a small fraction of your profit but if you are trading on one or five minute charts, the spread / commission cost will take a much higher chunk out of your profit.
Finally, it is very important that your chosen broker provides support while you trade. This could range from informing you on the reasons why the platform is down / when it will be back online to helping you with general software usage in case you are stuck. Good support will always save you time and enable you to trade with the confidence that someone is always there to reach out, should you need them.