Forex Brokers

The following are 10 factors you might like to consider when choosing a online forex broker. You can use this as a guide or checklist to narrow down on a selection of forex brokers that are right for you.

Word of Mouth

• What have other traders experiences been like with the broker?
• What is their customer service/dealing desk like?

Safety of Funds

• Is the broker regulated?
• Are client funds insured against fraud and kept separate from operating funds?

Execution

• What business model do they operate?
• How fast is the broker's order execution?
• Do they offer automatic execution?
• Will they place you on manual execution if they disagree with your trading style?
• How much can you trade before having to request a quote?
• Do they offset all clients' trades?

Spread

• How tight is the spread?
• Is it fixed or variable?
• Is it larger for mini accounts?

Slippage

• How much slippage can be expected in a normal and fast moving market?

Margin

• What is the margin requirement?
• Does it change for different currency pairs or days of the week?
• Is it the same for standard and mini accounts?

Commissions

• Do they charge commissions? (Market makers commissions are built into the spread)

Rollover Policy

• Is there a minimum margin requirement in order to earn interest on overnight positions?
• Are there any other requirements or conditions on earning rollover interest?

Trading Platform

• Is it reliable during fast moving markets and news announcements?
• How many different currency pairs can you trade?
• Do they offer an Application Programming Interface (API) for automated trading systems?
• Does it offer any other special features? (e.g. One click dealing, trading from the chart, trailing stops, mobile trading etc.)

Account Size

• What is the minimum trade size?
• Can you adjust the standard lot size traded?
• What is the minimum account opening balance?
• Can you earn interest on the unused equity in your account?

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