FX is a very exciting thing and it is fascinating to see how the home Forex trading world has changed over the last few years. There really are many people now making a living from their home.
However, having said that, anyone looking to trade in the Forex marketplace needs to have a strong trading strategy and a very good broker.
There are several reasons why a good broker is vital to trading success. The first comes down to the spread. This is the difference between the bid and the ask price. The larger the spread is, the more it costs to trade.
Although the difference may seem quite small, if you are trading regularly, it quickly adds up. This is why it’s really important to choose a broker with tight spreads.
The next factor that needs to considered is that of liquidity. It means how reliably you will be able to trade at the prices your broker quotes you.
The greater the level of the liquidity, the easier it will be to buy and sell at the exact prices that you want, or actually get quoted. Sometimes brokers will re-quote because they haven’t been able to execute the trade at the price they initially quoted, it’s also called slippage.
Any broker that you trade with also needs to provide a professional tool suite. Anything less is just not acceptable. This means that there will be pro charting tools to make use of, as well as educational facilities and the chance to get the latest economics news that is released, as well as up to the second numbers or indicators.
I also encourage all traders to look carefully at the usability of the trading platform that each broker provides as well. It should have a high level of intuitiveness, and the site should be easy to navigate around. Also, if the platform itself is web based, this is an advantage, because it means you can log into the system from anywhere in the world.
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