- Open a demo account
Before opening a live account and funding the account, it is extremely important that you know the features of each trading software. In the forex market, the customers are offered to download a free version of its software, by every forex broker.
- Account Types
There are mainly three types of accounts, Standard, Mini, and Micro.
The standard trading account is the most common account. This account affords you access to standard lots of currency, each of which is worth $100,000 which means you are very experienced trader
This account affords you access to standard lots of currency, each of which is worth $ 10,000 .This account is good for the new traders or experienced traders who prefer to trade in smaller units.
This account affords you access to standard lots of currency, each of which is worth $ 1000. This is the smallest trade size available and is a great size for traders that don’t have much capital to trade
- Choosing a Broker
In order to start trading forex, you will need to trade with the help of a forex broker. Your forex broker will provide you reliable trading platform, customer support during forex trading hours, charting and technical analysis tools access to quality forex news and commentary
- 4. Execution Speed
The speed with which trades are processed by a forex broker is important and which will in turn ensure that you get the most efficient price you can get The faster the execution, the better the price and filling orders at the target price.
- Leverage and Margin
Margin is the amount required to open a new position. It is not a fee, nor is it a charge to your account therefore it will ensure that you have a sufficient account balance relative to the size of your position
Leverage is expressed as a ratio and is based on the margin requirements imposed by your broker. With leveraged forex trading, you have more money to use for trading than the balance in your account
A trader wants to open a trade on EUR/USD worth 0.1 lots.
The contract value is therefore $10,000 and leverage is 200:1 or 0.5%.
This means that the investor needs 0.5% of $10,000, which is $50, as a deposit to open their position.
The spread is the difference between the buy (Bid) and the sell (Ask) price of the currency.
The spread is different from broker to another; it could be either fixed or variable
The spread is where the forex broker will make their money from
- Customer Service
How efficient is customer service? They must have a strong financial background and excellent customer support.
Most important customer service and support features
• Email – You may access customer support by email.
• Live Chat – You may access customer support by live chat.
• Phone – You may access customer support by phone.
• Trading Hours Support – You may access customer support during the majority of trading hours.