You need to understand many things to do with forex trading before you can start on the actual trading. If you do not do this but go ahead and trade, you will regret that decision. You, therefore, need to look at the main important qualities a forex broker possesses. This will be the way you select the best forex brokers. That will make it easier for you to choose one of them to open an account with.
You need to think of things like forex margin, forex leverage, ECN forex and forex spread. You should begin with look at the margin offered by the forex broker. A 2% margin affords you a leverage of 50 times on your money. It appears to be the current maximum one can access.
Not many of the forex brokers took this news well, and most have decided to go trace in foreign markets, where there is not such limitation. Look for review sites so that you can find out the best places to trade. You need also to be especially vigilant when it comes to the safety of your money. You need to see what rules have been put in place to ensure you do not lose any of our money if a broker declares bankruptcy.
Find tout id the brokers are market makers or use ECN. You will see the sense of this information. A forex broker with a dealing desk can trade against our positions. ECN brokers are the ones you may have to choose. You also have to consider that ECN brokers may turn out to be more expensive, when they decide to charge a commission per each trade. You will have to strike a balance between these too; to go with ECN or market maker brokers.
You need to know more about the forex spread. Where there is a low spread, it is to your advantage, since you will not be charged huge commissions. ECN forex brokers can afford to give very low spread due to the fact that their platforms can tap into a huge pool of liquidity providers. You also have to determine whether the spreads are fixed or variable. Variable spread situations usually mean there are wider fluctuations any time there is a major financial news announcements. Spillage is another factor to consider, where your order is filled at a different price than what you were expecting. You need to have an idea of the kind of spillage that might occur.
These are things you need to consider when analyzing potential forex brokers. You also need to access a demo and micro account for you to practice on. Beginners need to go through this. After such training only should they access normal accounts.