There are a huge number of forex brokers available for new traders and deciding which will be the best can be a confusing experience. Many brokers offer incentives in the form of sign-up offers for new accounts, educational material and state-of-the-art trading platforms and these can benefit both new and experienced traders in a number of ways. Having looked through the most popular forex brokers, and the services that they offer, there are a number of things to consider in selecting the most suitable broker.
Cash bonus offers from forex brokers
Many forex brokers provide a cash bonus for new account holders. This can typically range from 5%-100% of the initial deposit value and is an attractive offer for traders wanting to increase their trading capital from the outset. Other offers also include a fixed cash bonus for signing up for an account. There are, however, one or two things to consider when signing-up to a forex broker based on the terms of using this bonus cash. The first of these is to be aware of the number of times that a trader will need to ‘trade through’ this bonus before it can be withdrawn. This is often a minimum volume or value of forex trades which prevents people simply signing up and withdrawing the bonus immediately. There are several brokers, however, who do provide a condition-free sign up bonus, although this will often rely on the size of the first deposit so, again, it is worth reading the terms of any offers to make sure this is clearly understood.
Trading platforms and availability of markets
This may seem like the most obvious of things to look for in selecting a new forex broker but the platform and available markets can be essential to trading success. All of the most popular brokers have put a lot of resources in to providing the most innovative and user-friendly trading platforms to their traders. All of these provide real-time prices and many also offer additional features such as rolling news updates and advanced charting. For those traders who will need access to their trades and charts on the move, many forex brokers provide high-quality mobile and tablet applications for apple and android devices. It is also worth noting if the primary platform is 100% web-based, requiring a log-in through the homepage, or if this is available as a downloaded software package. Additionally, some brokers will provide their own proprietary trading package whilst other will offer their platform based on a popular software package such as the Metatrader platform.
Most forex brokers will offer a full range of available forex markets and it is important to research the width of the spreads offered on these markets. As most forex brokers no longer charge commissions on trades; they make their profits on the spread provided between the buying and selling price. Some brokers will provide a fixed spreads whilst others employ flexible spreads which will widen and narrow depending on market conditions. For those looking to trade minor or exotic currency pairs, it is also well worth comparing if these markets are available and at the most competitive rates.
Education packages and forex tuition
For new traders, perhaps the single most important factor in choosing a forex broker will be the level of commitment they demonstrate towards traders beginning their forex careers. Whilst many will offer tempting cash bonuses for new accounts, an additional sign of a quality forex broker will be those which offer a comprehensive education package to new traders. Many of the best brokers currently offer free online courses, webinars and ebooks for new traders to learn how to trade. Furthermore, many will also provide a demo trading account to allow those new to forex, and also those wanting to test new strategies, the ability to practice without risking any real money.
As a demonstration of whether a forex broker has a traders best interests at heart, it is well worth evaluating the quality of the services provided against the provision of educational content. Whilst there is a whole range of free educational content available online, the provision of courses provided through the broker will demonstrate a commitment to the longevity of a traders account.
