How to Choose a Forex Broker

Tuesday, November 4, 2008

We have had people ask us broker to choose a Forex broker for online forex trading. Here we will discuss in detail what we think you should know about choosing a forex broker.

Low Spreads or Transaction Fees
Online Forex Trading Transaction costs are calculated in pips. The lower the better. Generally, spreads are currently between 5-1pips on average. Be careful of forex brokers advertising 0 pip spreads. They are likely charging fees in some other way.

Leverage Options and Margin Requirements

Leverage can be a good thing, or a bad thing, depending on how you use it. Better brokers will have different leverage options, meaning a selection of leverage ratios. Perhaps a 400:1 leverage ratio is too high for you. Do they have a 200:1, or 100:1 option? You need a forex broker that can offer the leverage values you want.

Most online forex brokers pay interest on a trader’s margin account. Keep in mind that most forex brokers do not allow you to accrue interest unless your margin requirement is at least 2% (50:1).
Forex Brokers Customer Service
Almost nothing is as valuable as good customer service, especially with online forex trading. Even if you don’t use it, you should have access to some minimum service requirements. Does the Forex broker have 24-hour support? Can you contact them by phone? 4x Chat? When you talk to them, do the people seem knowledgeable? A word of caution… service might be better before you open and fund a real money account. If you find that to be the case, withdraw your money and move on to a new forex broker.

Refer A Client
If you have any friends who trade in the Forex market, and may be interested in joining ForexGen.com, why not get a FREE cash bonus from their trading activities?The referring party will receive $100 USD to their ForexGen account, at the end of the month in which the following criteria are met:

1. The referred party has opened a live standard account of at least $2,500 USD and has traded 20 round turn lots.

2. The referred party has opened a live mini account of at least $250 USD and trades 20 round turn lot, the referring party receives $10 to their ForexGen account.

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com