Forex Brokers

Find the best forex broker to suit your needs. One the first considerations when deciding on which forex broker to trade with is what they charge for the service. The difference between the buy and the sell price is the spread which is measured in pips so we will take a look at the different spreads offered by some of the most popular brokers. We also take a look to see if there are any hidden fees or charges. Another important consideration is interest received and charged. All currencies have an interest rate associated with them so if you are holding a position open overnight then you will either gain or lose on the trade according to the rollover.

What is the first step towards trading forex online?

Once you decided on the broker you want to use you will need to download some forex trading software and the instruction manual. Log in with your demo account username and password and get used to all the features of the software. There may be video tutorials available online which will show you how to place a trade with appropriate stop and limits.

There are sometimes limits imposed on how long you can trade one demo account which is sometimes a month, but you can apply for another account straight after. It has been said that you should try to double your trading account before you trade live. But perhaps a more realistic goal would be to make a return in the region of 5 – 10% using a set strategy. Once that had been achieved you may feel the time is right to trade live. Rest assured once you are trading your own money you will not be quite so cavalier in your trades.

An example of a forex broker – Saxo Bank