Summing Up

These are the things you have to look for when searching for a broker:

1. Low Spreads.

Low spreads mean more saving for you. This is the difference between the buy and sell prices of currencies.

2. Low minimum account openings.

If you do not have enough capital to trade at the Forex market, you should be able to open a micro trading account that has a minimum deposit of $250. Ideally however, your trading account should have at least $1,000.

3. Instant automatic execution of your orders.

Automatic order execution is very important when choosing a broker. Never deal with a broker that makes a re-quote if you click on a price. Avoid also a firm that allows price slippage. If you are trading for small profits, then this is very important. Find a broker that is capable of instantly executing your order at the price displayed on the platform.

4. Free charting and technical analysis

You need to find a broker that can provide charting and technical analysis tools. It is also best if your broker can provide free professional charting service. You should also be allowed to trade directly on the chart.

5. Leverage

By using leverage, you can become super rich or dirt poor in a matter of seconds. As a new trader, you need to limit your leverage. As much as possible, keep your leverage in 100:1 ratio for standard account and 200:1 for mini accounts.