Forex Brokers Tips
Read these 7 Forex Brokers Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Forex tips and hundreds of other topics.
How to Spot a Forex Scam
Not all Forex brokers are legitimate, so it really pays to do your homework! Never make out a check or a wire transfer to anything other than a broker registered by the NFA (National Futures Association) and beware - there are NO NFA registered companies located offshore or in the Bahamas.
Most Forex fraud comes from Boca Raton, Florida, Russia, Southern California, and outside of the U.S. so be very careful when dealing with "Forex brokers" from one of these locations.
If claims are made like " Make $10,000 per day" - be very wary. Remember, if it sounds too good to be true, it probably is.
Forex Brokers That Offer a Practice Account
Practice makes perfect, and there is no better way to learn Forex trading than by getting a practice account and testing the waters. Don't get discouraged if you don't do well at first. Just go back and analyze your assumptions, and see where you went wrong.
Many online Forex brokerages offer practice accounts. A few examples include Saxo bank, Forex.com, and CMS Forex - all highly rated Forex brokerages.
What Are Some of the Best Forex Brokers?
There are as many opinions about Forex brokers as there are Forex brokers, but some commonalities are present.
Saxo Bank is rated highly as it offers email newsletters on the market, 24-hour service, direct chat to traders, and a practice account. They also have a secure trading environment.
CMS Forex accepts no commission and allows you to open an account with only $200. They also feature leverage as high as 400 to 1.
GAIN Capital operates Forex.com, which features extensive online training resources and low minimums. Many traders had great things to say about GAIN's resources and ease of trading.
Another broker that is highly regarded is Oanda, as their platform is considered very user-friendly.
What Do You Need to Know Before Trading in Foreign Currency?
Before trading in the Forex market, it is essential that you spend some time learning the terminology, charting techniques, technical analysis interpretation, and secrets of successful traders.
There are many great books on the subject, and many blogs that you can visit to hear the latest and greatest.
The most time efficient way to learn currency exchange trading is to either purchase videos, or visit sites with free demo videos available.
If you have questions, most Forex brokers are happy to answer them, as they want you to become an ongoing customer and prosperous trader!
Best Forex Brokers for Beginners
If you are a beginner to foreign currency trading, it makes sense to start with small investments that support Internet-based deposit and withdrawal systems like Paypal or eGold. It is also wise to look for a broker that offers extensive educational support.
Four of the best brokers for beginners include Marketiva which allows a minimum deposit of $1 and gives you a $5 bonus for joining, Forexyard which has an easy to use Java-based trading platform, Northfinance which is highly rated and has a low deposit requirement, and Oanda which allows you to start with $1 which you can deposit from your Paypal account.
Forex Broker Reviews
Before signing up with a Forex broker, it is prudent to read as many reviews as you can!
Be sure to look at the average of the reviews, and take any strong negative with a grain of salt - as some people just love to complain.
However, if you see a pattern in the reviews that show a genuine issue, it is best to choose another broker.
There are many sites that show customer reviews and give ratings. One of the best is www.goforex.net/forex-broker-ratings.htm. Another great place to research brokers is www.traderslog.com/broker-reviews.htm. - which includes an extensive list of brokers and customer input.
What is a Forex Broker?
A Forex broker is very similar to a stock broker, and many new online Forex brokerages have recently emerged. The key difference is that Forex brokers deal only in currency exchange investments.
Similar to securities brokerages, Forex brokers come in all sizes, shapes, and levels of service. An online Forex broker provides minimal service at minimal cost. If you require more advice and expert guidance, there are many full service Forex brokers available, as well.
If you do go with an online broker, make sure that you choose one that has an extensive online knowledge base and 24/7 support so that you can execute all trades wisely, and quickly.
